Fears grow over gilt market sell-off

Baring Asset Management said it was "increasingly concerned" about the course of economic policy and what it means for gilts. It said the revision of second quarter GDP to 0.1% left insufficient growth to allow the UK to reduce its debt. Barings said the additional round of QE will to make an expensive asset class even more expensive and add to pension fund deficits. International investors, who own over 30% of the stock of outstanding government bonds, may sell their stock to crystallise their profits, Baring said. Baring Asset Management head of fixed income & currency Alan Wi...