Government bonds

M&G's Mike Riddell has predicted further falls for sterling in the face of 'rampant' selling from the 'currency vigilantes', amid a drop in sterling yesterday to a new multi-year low.

Aberdeen has launched a Strategic Bond fund for its London-based global credit team.

European bond and stock markets saw a sharp sell-off on Monday after a shock result from the Italian election, where no political group managed to win a majority vote.

Bill Gross, manager of the world's largest bond fund, has compared the US economy to a supernova on the path to extinction as it has become too reliant on credit and real growth is being eroded.

US treasury 10 year yields have climbed past 2% for the first time in nine months, as better than expected data in the US helped bolster risk asset sentiment.

Fixed income remains popular with investors despite a very recent shift towards equities, but which bonds currently pose the greatest risk to investors?

M&G's Mike Riddell has sold out of his position in 5- and 7-year Italian government bonds ahead of a possible sell-off following the country's general election.

The future stability of the global economy has been threatened by the Bank of England and six of the largest central banks issuing close to $6trn of "essentially free" money since the financial crisis, according to PIMCO's Bill Gross.

The decision by Mario Monti to stand down as Italian Prime Minister earlier than planned has caused markets to fall across Europe today, and led to a spike in Italian bond yields.

Global fund management groups such as BlackRock, T Rowe Price and Federated Investors are rushing to set up ‘ultra-short' bond funds to lure investors away from the money markets.