Alliance Trust's head of fixed income says the only way is up for yields on gilts and treasuries amid record lows.
The 30-year bull run for government bond markets will soon end, with yields on gilts and treasuries set to strengthen amid a return to normal conditions, said Alliance Trust’s Rod Davidson. The group’s head of fixed income said with both rates and yields at record lows, the only way is up from here over the next few years. Speaking at the Investment Week Global Income Focus 2011 event in London last Wednesday, Davidson said: “If you look at the ten-year US treasury yield over the last 250 years, you will see it has never been lower. If you believe in any kind of mean reversion, it mus...
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