Leaviss expects poor gilt income for duration of BoE intervention

Gilts will be poor income investments for as long as the Bank of England continues to buy them, whic...

Gilts will be poor income investments for as long as the Bank of England continues to buy them, which could be indefinitely, according to M&G fixed income manager Jim Leaviss. Yields on the asset class hit historic lows on back of the Government's first reverse auction to buy £2bn of its own bonds back from the market last week. Ten-year dated gilts closed on 3.08% yields yesterday, down from 3.1% the previous day and 3.9% on 31 January. And £1.03bn M&G Gilts and fixed interest manager Leaviss claims Bank will continue paying high prices for second hand Government bonds, as long as th...