Global bond traders ‘getting too complacent’

Persistent concern: People use umbrellas as they walk through a shopping street in Tokyo. The country, which finally emerged from decades of deflation, remains a worry for some investors. — AP

LONDON: Just as bond traders grow more assured that inflation is finally under control, a camp of investors is quietly building up protection against the risk of a future spike in prices.

These fund managers are amassing positions that would cushion fixed-income returns in the event of an inflation shock.