The end of QE: Could the Fed start tapering this summer?

Leading bond managers have said the US Federal Reserve could start winding down its QE programme as soon as this summer, with treasury yields jumping as a result.

Global bonds suffered their fourth-worst month in 20 years in May after chairman Ben Bernanke said the central bank may slow the rate of its bond purchases if the unemployment rate and the economy continue to improve. Helen Farrow, fixed income director on the Ignis Absolute Return Government Bond fund, argues the Fed could begin tapering in Q3. "We have profited from the declines in bond markets as investors have now began to factor in an end to quantitative easing in the US," she said. "It has been our long-held view that 2013 would be the year that investors have to consider h...