QE plan gives boost to US bond vehicles

Bond managers expect exposure to US Government debt will continue to drive strong fund returns in th...

Bond managers expect exposure to US Government debt will continue to drive strong fund returns in the coming months after last week's Federal Reserve quantitative easing plan gave an initial boost a number of vehicles. Similar to the effects seen on gilt funds in the lead-up to the Bank of England's move to buy long-dated debt, the Federal Reserve's announcement it will buy $300bn of two to ten-year Treasuries gave an initial boost to a number of UK-domiciled bond funds. Thursday's price rises led the benchmark 10-year US Treasury yields to the largest single-day drop in since 1987, she...