Investec offloads government bonds on ‘hysterical' double dip fears

Investec Asset Management's John Stopford says the group has been selling European and US government bonds as fears over the economic slowdown have become "overdone".

Stopford, Investec AM's head of fixed income, says he will look to continue selling sovereign bonds should data point to a further stabilisation in the economy, Bloomberg reports. "The market is getting a bit hysterical," Stopford says. "Clearly, growth is in the process of slowing somewhat, but the bond market is pricing in a 50 or 60% chance of a double dip and deflation. That is too high in our view. The risk/reward favours being short bonds." Stopford says Investec has also bought put options on eurodollar interest-rate futures. After dropping to all-time lows late in August, g...