UK gilts could offer cover for investors instead of US Treasuries with predictions of a decline in capital expenditure coupled with ongoing tariff tumult expected to accelerate a pivot away from the US.
According to strategists at JP Morgan Asset Management (JPMAM), US Treasury notes may no longer act as a safe haven asset, with UK gilts primed to offer the best alternative. "I think gilts are the standout within global fixed income markets," said Hugh Gimber, executive director and global market strategist at JPMAM. Markets have repriced the path of interest rate cuts for the Bank of England and also the UK government "is much more fiscally constrained", he explained, making gilts more appealing. FIF25: RLAM's Mike Fox lambasts anti-US exceptionalism narrative "The risk of a...
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