Gibbs builds shorts in treasuries and bunds

Jupiter Absolute Return fund manager Philip Gibbs has built up large short positions in US and German sovereign debt.

Gibbs, who had a 1.88% net short in treasuries at the end of the third quarter, took the position up to 12.88% of his £635m fund at end October. The manager also introduced a short on German bunds last month, which equated to 4.22% of the portfolio. Yields on the benchmark 10-year treasury and equivalent bund have fallen sharply over recent months, and are now trading at 2.77% and 2.62% respectively. Gibbs also has a 24.54% net short in Japanese government bonds, a position he introduced near the launch of the fund in December last year. "Government bond yields look ridiculously...