European bond markets on the up

Fund managers are holding a negative outlook on the volatile US and UK government bond markets. The least threatened of the major issuers are the European governments, where bond markets are looking up. Colin Harte, head of government bonds at Barings, says: 'We are quite cautious following the post-war lows of last year. While there has been some economic recovery globally we are still quite cautious following the deterioration of the budget deficits in the UK and US.' Barings is currently defensively positioned in short duration government bonds globally. For the UK, Harte is quit...