Europe benefits after US and UK hit by rate rises

Interest rate rises in the UK and the US have severely affected government bond yields on both sides...

Interest rate rises in the UK and the US have severely affected government bond yields on both sides of the Atlantic, with Europe looking a better bet due to a more benign rate environment to come. Alix Stewart, senior portfolio manager at Gartmore, believes government bonds look quite expensive, especially in the US, with further rate rises expected. Oil prices are increasing and there are concerns inflation could pick up, forcing the Fed to continue its tightening policy for a while longer, she adds. JP Morgan Fleming is similarly cautious on government bond markets, although it belie...