Leaviss: Gilts to remain strong on 'significant' double dip chance

M&G head of retail fixed income Jim Leaviss believes government bonds still offer value despite the yield on the 10-year gilt approaching historic lows last week.

Continued concerns for the global economy drove the yield on the benchmark UK government bond below 3% for the first time since March 2009 on Thursday. It was trading at 2.97% on Friday, just four basis points higher than this century's low of 2.93%. Leaviss says government bonds could continue to show strength as the global economy faces a "significant chance" of slipping back into recession. "As a team we have consistently been saying it is going to be low growth for a longer period of time. We remain of the view that central banks are not going to be able to put interest rates u...