Gulf escalation fears mean it's time to exit longer-dated bonds
TLT•BlueBay says investors should close long-duration positions in developed government bond markets, citing the risk that renewed Middle East escalation could push energy prices higher and worsen the global inflation shock.
1. Bond positioning warning
Mark Dowding, fixed income CIO at BlueBay, said investors should exit longer-dated developed-market government bonds as the risk of escalation in the coming weeks grows. He said that escalation on both sides could add to energy prices and exacerbate the global inflation shock.
