Is there value in safe haven asset classes?

ON BONDS

LGIM's Michel Canoy discusses whether treasuries and gilts are overvalued.

As a result of the European crisis, US political tensions and slowing global growth, yields in the US, UK and Germany fell to new lows. Traditional ‘safe havens’ were the major beneficiaries of this “risk-off” environment, but with evident tail risks in the system, are treasuries and gilts overvalued against other asset classes? In the short term, government bond yields may be supported by low interest rates, weak growth and risk aversion, but in the longer term, technical factors, such as downgrades and larger refinancing requirements may put upward pressure on yields in developed marke...