Govt bonds look expensive

clerical medical and Aberdeen express concern that valuations have become stretched

Both Clerical Medical and Aberdeen Asset Management have become concerned valuations on Government bonds in the UK have become stretched. Aberdeen, however, sees the greatest risk attached to bonds in the final quarter to be on the upside, while Clerical Medical also believes a further fourth quarter rise in valuations is likely. Michael Karagianis, head of global strategy and asset allocation, said: 'Government bond valuations are currently expensive and based on an assumption of a global recovery extending over the next two years traded yields and inflation expectations are now at o...