Pension money raises prices of UK, US and Europe bonds

The increase in pension funds investing in government bonds is expected to push up the price of long-dated bonds in the UK, Europe and US, and managers have been repositioning portfolios as a result of this. The Schroders Global Bond fund is overweight on the long end and underweight on the short end for the UK, US and European markets. David Scammell, director of fixed income at Schroders, is favouring the UK because interest rates, currently set at 4.5%, are expected to reduce this year. He says: "The Bank of England has undergone its period of tightening and as consumer spending...