Government bonds

Aberdeen's emerging market debt team has warned against investing in Turkish local currency government debt after yields spiked to record highs.

The yield on 1-year German bunds turned negative today for the first time ever, according to Bloomberg data, as the European Central Bank looks set to ramp up measures to fight the debt crisis.

Bill Gross' $240bn Pimco Total Return fund has fallen behind 92% of his bond manager peers in terms of calendar year performance.

Yields on short-dated German government bonds turned negative this week as bondholders paid to lend to the country, despite a dismal auction of 10-year bonds on Wednesday.

So suddenly no-one wants to lend to Germany for the next ten years - hardly surprising because by lending to Germany investors are effectively lending money to Greece, Portugal and even Italy.

Fears over the European debt crisis have escalated as a €6bn German bund auction fell flat today, showing investors are now demanding even higher compensation from an asset class previously seen as a safe haven.

EUROPE ON THE BRINK

Swiss bonds were returning a negative yield during trading today as the country's government sold 6 month paper at -0.148%.

ON BONDS

Fidelity Worldwide Investments has launched an Emerging Markets Inflation Linked Bond fund for Andrew Weir.