Swiss & Global's Puntillo cuts duration on tapering fears

Enzo Puntillo, head of fixed income at Swiss & Global Asset Management, moved out of 30-year treasuries last month in his Julius Baer Total Return Bond fund as market fears grew about the possible tapering of the Federal Reserve's QE programme.

Puntillo (pictured) made the move in anticipation of a market reaction to the Federal Reserve's plans to slow asset purchases, which caused a spike in 30-year treasury yields from 2.83% to 3.3% over the month of May. As a result, he sold down his 30-year US treasury exposure and moved into issues with a 10-year duration instead, fearing a further spike in yields. "There are good growth numbers going into the 10-year area and we believe we are three quarters of the way along to normalisation," Puntillo said. "We did not make the move earlier, because only some members of the FMC wer...