Strong buying of government debt by the UK's banking sector is needed to prevent a rise in gilt yields as overseas demand wanes, says Simon Ward, the chief economist at Henderson Global Investors.
Threadneedle has altered the investment policy of its £406m Strategic Bond fund to allow the use of derivatives for investment purposes.
Neptune is exiting the fixed income space, with the closure of its Corporate Bond and International Bond funds, both run by Ted Alexander.
Ignis' Chris Bowie believes total corporate bond returns will reach 5% in 2011 compared to the 10% highs achieved by the best performing funds this year.
PIMCO's co-CIO Bill Gross has poured $4.4m (£2.7m) of his own money into five municipal bond funds run by the group in anticipation of a rally, Bloomberg reports.
Franklin Templeton has launched a total return bond fund into its Luxembourg-domiciled Sicav.