US Treasury bonds leading recovery

Fund manager's comment

Since the lows of around 4% on UK 10-year bond yields in June 2003, gilts have backed up by around 0...

Since the lows of around 4% on UK 10-year bond yields in June 2003, gilts have backed up by around 0.8%. The move higher has been led by the US Treasury bond market in response to strong economic data and recovery in global equity markets. The debate for bond managers centres on the strength and durability of the recovery and the outlook for short interest rates and inflation. Economic data has led to upwards revisions to GDP for this year and the next, but underlying issues still need to be resolved before investors should fully buy into the sustainable above-trend growth scenario. Co...