Gross' Pimco turns bullish on gilts

Pimco, the world's biggest bond manager, has turned bullish on UK government debt, just six months after it warned gilts were resting "on a bed of nitroglycerin".

The Guardian reports the California-based asset manager is more optimistic about investing in Britain following the tough budget cuts announced by new coalition Government. Europe's debt woes have also made other sovereign bonds relatively less attractive than the UK also, the manager believes. Led by Bill Gross, Pimco's $1tn of assets under management makes ensures its views on bond markets are widely read. Its view on gilts comes just days after Standard & Poor's warned on a possible downgrade of UK debt from its prized AA rating. However, Pimco is no stranger to going against...