Ruffer Investment Company has increased its exposure to bonds with longer maturities following the sell-off in the US Treasury market last month, as managers bet a further escalation of bond yields is unlikely.
In the trust's latest factsheet, managers Duncan MacInnes and Jasmine Yeo said the bond market narrative has shifted from "recession is still a possibility" to "definitely a soft landing", with long-dated US yields rising through the 5% level as a result. This shift gave them an "attractively priced opportunity" to significantly increase the portfolio's duration, arguing that investors seem "comfortable that both the economy and financial markets can support higher interest rates for longer". Ruffer sets out rationale for first ever buyback following 'disappointing' performance The...
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