Artemis' Foster increases short on gilts after positive GDP

Artemis Strategic Bond fund manager James Foster has increased his short position on gilts following Tuesday's stronger than expected UK growth figures.

The 0.8% third quarter growth, double economists' 0.4% consensus, immediately led to a spike in gilt yields - with benchmark 10-year gilts climbing 22 basis points to 3.14% since the growth announcement. Foster, who had a 9.2% short position in the December 2010 gilt future at end September, increased his short after the positive numbers came out. The manager says following the growth figures there is "no justification whatsoever" for more QE. "Growth seems to be tickling along very well and the only time you should even consider easing is when the economy is in freefall," Foster s...