Henderson's bond stars close US and UK govt shorts

Henderson's John Pattullo and Jenna Barnard have closed out short duration positions in gilts and treasuries after revising their interest rate expectations.

Barnard, who co-manages the £1.1bn Strategic Bond fund with Patullo, originally held short-dated interest rate swaps in both treasuries and gilts, giving the portfolio a duration of minus four years in the bonds. However, the duo have now closed them out, after weak economic data from both regions pushed back growth and inflation expectations and left policymakers more likely to keep monetary policy loose. Barnard said: "We had originally thought the Bank of England would hike interest rates in May, but now we think it is likely to be later on in the year. "In the US, we also do no...