Baillie Gifford is re-naming and changing the objectives of two of its gilt funds.
OMAM head of fixed income Stewart Cowley believes gilt yields will plunge to 2% by the second quarter of next year but will more than double over the next 12 months.
Government bonds jumped on Wednesday on rumours the Bank of England could be moving closer to increasing its £200bn "money-printing" programme to buoy the recovery.
Investors are continuing to pile into gilts as fears deepen that the global economy could be teetering on the brink of a double-dip recession.
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.
The Debt Management Office has raised almost half of its bond sales target for this financial year in just four months on continued strong demand for gilts.
The Bank of England has made a £5.5bn full-year loss on the assets bought under its quantitative easing (QE) programme to prop up the battered UK economy.