gilts

GILTS

The Swiss central bank "aggressively diversified" into UK gilts in the third quarter, providing a boost to sterling, but the end of this process could be damaging to the currency, according to analysts at Nomura.

It has been a monumental ten years for equity and bond markets, with the euphoria of the first half matched by the despair seen on the faces of traders in the second half, after one of the worst financial meltdowns ever seen.

M&G is to explore ways to slow inflows into Richard Woolnough's £6.3bn Corporate Bond and £5bn Strategic Corporate Bond funds.

Global equity markets are tumbling this morning as the eurozone crisis once again takes centre stage, with Spain's debt costs leaping to a new record high and speculation returning Greece will exit the single currency.

Spooked investors nervous about the outlook for major economies around the globe are buying record amounts of short-term assets.

Stronger than expected employment data could not prevent Wall Street selling off at the open this afternoon.

The yield on UK gilts has fallen to a new record low during trading today, as demand for safe havens picks up once again following indecision from the Fed over expanding its stimulus programme.

M&G's Richard Woolnough said the possibility of another £375bn in asset purchases by the Bank of England means gilt yields could remain at record lows for years to come.

The Bank of England will continue with its quantitative easing programme until it owns all of the gilt market not controlled by life companies, according to Schroders' Gareth Isaac.