Portfolio manager Mark Lindbloom expects rates to rise modestly in the second half of the year and that's why he is paring back his Treasuries position in the Western Asset Total Return Unconstrained Bond Fund after months of strong gains. Lindbloom also said it is beneficial for him to be in an 'unconstrained' bond fund, as opposed to being tied to a specific index, because it gives him flexibility to find yield globally in the low rate environment. Finally, Lindbloom is bullish on non-agency mortgage backed securities because they offer attractive yields in a rapidly improving housing market.

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