How to short government bonds

Government bond yields have been falling for 30 years. So how do you short government bonds? Simon Caufield explains.

Gold's latest bull market began around ten years ago. But government bonds have been on a tear for far longer indeed, yields have been falling (so prices have been rising) for 30 years. Today, investors are buying them for fear of deflation.

And central banks have been buying as part of quantitative easing (QE). As a result, yields are now even lower than in March 2009, when we thought the world might be ending.

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Simon Caufield started out as an engineer and has an MA in engineering from Cambridge. This was followed by an MBA from the London Business School.

 

After graduating, Simon worked his way up to become a Management Consultant for banks and insurance companies. This gave him the chance to see the city from the inside.

 

In 2001, Simon started his own company to develop software designed to price banking services, such as loans and deposits. After growing the company to 100 employees, he went on to sell this in 2007, looking for his next challenge. 

 

Also during 2007, Simon ‘sacked’ his fund managers and took complete control over his investments.  Now he devotes all his time to investing and is an angel investor to help start-up companies. He has built up a reputable 20 years in the industry.

 

Simon writes his own investment newsletter – True Value. This follows the strategy he established in 2007 and is based on assets that are priced way below their true value.  He scours the worldwide markets for equities, bonds and alternative investments to find opportunities that fit his conservative and contrarian approach.