Bond bubble fears may be unfounded says Threadneedle

Fears a bubble may be forming in government bonds may be unfounded says Threadneedle's Quentin Fitzsi...

Fears a bubble may be forming in government bonds may be unfounded says Threadneedle's Quentin Fitzsimmons. Threadneedle's head of government bonds says with ten year US treasuries currently offering yields of 2.3% at a time when governments are borrowing unprecedented amounts of money it is unsurprising concerns are being voiced. However, Fitzsimmons says the balance between supply and demand is the crux of the issue. "We already know that the UK government will need to borrow almost £150bn gross worth of gilts in the coming year and this should already be included in the pricing," he ...