Invesco Perpetual's co-head of fixed income Paul Read has said April's French presidential election is the "one to watch" for markets in 2012.
Yields on UK gilts jumepd in early trading as investors reacted to the threat of a possible downgrade of the UK's AAA rating.
Owning gilts has made the single largest contribution to recent performance of the £761m Miton Special Situations fund, and there is more money to be made in the asset class, said manager Martin Gray.
Distinction Asset Management has converted its Cautious Return fund into a multi-manager absolute return portfolio, managed by Armstrong Investment Managers.
Colin Harte, co-manager of the Barings Global Bond Trust, has left the company after 12 years of service.
Barings' multi-asset team has bought £350m in Italian government bonds in the expectation European banks will use the ECB's Long Term Recovery Organisation (LTRO) to buy government debt.
Bondholders in debt swap talks with Greece may get offered a sweetener in the form of a coupon linked to the future GDP growth of the country.