Schroders' Jolly shorts bunds and treasuries

Schroders' head of global macro Bob Jolly has revealed he is shorting long-dated treasuries and German bunds in the expectation the ongoing economic recovery will reduce demand for safe havens.

Jolly said the group's £91.6m Absolute Return Bond fund - run by managers Bhupinder Bahra and Frederick Bourgoin - is short 30-year debt issued by the US and Germany, in the expectation economic data will continue to improve. Jolly said: "In the case of duration, places like the US, UK and Germany have basically become expensive because of their safe haven status. "If we are right and through time the economic recovery continues, it is likely those yields will rise, so we are short US and short German bonds at the very long end." The move to short US and German debt within the Abso...