gilts

Core government bond yields have tumbled this afternoon, as investors rush back to safe havens and stocks slump amid widespread selling.

The UK's blue chip index has shed 100 points to drop below 6,350, hitting a fresh 12-month low at the end of a volatile week for equity markets.

The pound reached a two-year high against the euro overnight while yields on gilts and treasuries rose, as Scottish voters rejected independence from the UK and investors swapped safe havens for equities.

Threadneedle's Richard Stevens is to leave the firm at the end of the month, handing over his trio of government bond funds to other members of his team, Investment Week can reveal.

The upcoming Scottish referendum may be providing an unexpected boost to the index-linked gilt market as a lack of supply and investor caution fuel a strong rally in the space.

UK gilts are the best value they have ever been compared to German bunds, M&G's Richard Woolnough has said.

Positive economic news in the US and the continuing recovery in the UK have pushed equity valuations near to peak levels. So where can investors turn for protection in case markets fall from here?

Overseas investors may abandon gilts in the run-up to the vote on Scottish independence, with volatility likely to jump as uncertainty increases.

M&G's Richard Woolnough has said fixed income investors should overcome their fear of duration and embrace an expected uptick in 100-year bond issuance this year, but peers are sceptical about the bonds.

M&G's highly-rated bond fund manager Richard Woolnough has said he would raise rates this year if it were up to him - but said such a move could present a buying opportunity.