AXA's Iggo finds value in longer-dated gilts

Axa IM's fixed income CIO Chris Iggo believes long-term government bonds offer value now yields are ...

Axa IM's fixed income CIO Chris Iggo believes long-term government bonds offer value now yields are back in a well-established range following the market lows of last year. The 30-year gilt yield is now above the levels seen last September, as are long-term government bond yields in other major markets, according to Iggo. "Long bond yields are back to pre-Lehman levels. That makes them look reasonably good value again. At around 4.5% yields are consistent with nominal GDP growth in a modest recovery world," he says. "You can get close to 4.8% on some AAA non-sovereign bonds for 20-3...