UK and European bonds boosted by equity slide

UK and European government bonds are at the lower end of good value but investors fleeing from volat...

UK and European government bonds are at the lower end of good value but investors fleeing from volatile equity markets continue to support prices. Kevin Adams, director UK fixed income at Credit Suisse Asset Management, says: 'Bond yields have been in a range of between 4.5% and 5.5% for the past three years but we are very much at the lower end of that range now.' Prices have risen as yields have fallen over the past three months because interest expectations have changed in the UK and elsewhere and 10-year UK bonds are currently yielding 4.6%, down from about 5.3%-5.4% in April/M...