Negotiating 'dangerous' markets
Gilts have continued to surprise the market with stellar returns, but should investors expect a sell-off this year?
The yield on a 10-year UK government bond fell to a new record low below 1.4% on Thursday after comments the Bank of England is in 'no rush' to raise interest rates.
The rapidly falling oil price is creating the perfect environment for a 'disinflationary boom' in asset prices, according to the managers of the Ruffer investment company.
Diverging fortunes for government bonds and credit in recent weeks have prompted some fund buyers to suggest strategic bond portfolios could flourish again in the coming months.
The golden age of exceptionally low bond volatility is drawing to a close, and investors would be wise to lock in any handsome profits before monetary policy shifts, explains Lombard Odier's Grant Peterkin.
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.
The Scottish government will be able to issue its own bonds from 2015 in a 'historic' devolution of borrowing powers, the Treasury has announced.
Nick Gartside, J.P. Morgan Asset Manegement's global fixed income CIO, explains why he expects any further sell-off in fixed income to be more muted, after the cost of shorting government debt jumped.
The Bank of England has again moved to temper expectations of an early rate rise, despite the UK unemployment rate dropping to close to the crucial 7% mark this morning.
A year hyped as the start of a great rotation from bonds into equities actually saw more of a trickle out of fixed income, but it was not plain sailing for bond funds.
Update: Benchmark ten-year gilt yields have hit a fresh two-year high of over 3% after the Bank of England opted not to release further ‘forward guidance' earlier this afternoon.
The rise in bond yields during May and June has left few parts of the bond market unscathed, and UK bonds were very much part of this move.
This week has seen further volatile moves in markets - particularly within fixed income as investors unwind positions in government and emerging debt - while Chinese equities also hit the headlines on fears of a slowdown in the country.