The world’s biggest investment funds are cutting exposure to US and UK government bonds amid fears that rising public debt and the withdrawal of central bank support for their economies could scupper the global recovery.
The funds fear that a big rise in government bond yields, or interest rates, triggered by market concerns about public finances, could quickly feed through to higher mortgages and business borrowing costs. As yields rise bond prices fall, devaluing the funds’ holdings.
Monday, January 04, 2010
Funds cut US and UK bond holdings
The Financial Times reports:
