This year is set to be a big one for government bond markets. Both in Europe and the US, governments are forecast to increase their net issuance of debt by as much as 40% in 2010 as they attempt to plug holes in their ballooning deficits. At the same time, in what could look like an attempt at brinkmanship, some of the world’s biggest bond managers say they’re cutting their exposure to US and UK government debt.
Bond funds such Pimco, the world’s largest, with almost a trillion dollars of assets under management, argue that record...
