Barings trust bets on decline of government bonds

Colin Harte, manager of the trust, explained that the flight to quality and government bond yields' subsequent ebb has made him bearish on the outlook for global bonds. He revealed: "We have built a sizeable short position in government bonds, predominantly US Treasuries. We believe that the policy stance of the world's monetary authorities, which have stepped in to support financial systems and stimulate economic growth, will prove expansionary, pushing inflation higher and eroding the value of bonds." Harte continued: "Meanwhile in the currency markets we have moderated our net long p...