Government bonds

Legal & General Investment Management's Richard Hodges has been buying into UK banks' subordinated bonds as well as boosting his exposure to government debt.

Michel Canoy, fund manager of FIT and MMIT at LGIM, examines the state of today's bond markets and looks at what investors can do to negotiate volatility as world order unravels.

ON ASSET ALLOCATION

OMAM's Stewart Cowley has said the global bond market is in the last throes of a rally, even as the Federal Reserve looks to cut yields via Operation Twist.

High-yield products may look like other bond offerings, but they do not act like them, writes Arif Husain, director of fixed income at AllianceBernstein.

Bob Michele, global CIO of fixed income and currency at J.P. Morgan Asset Management, has said Greek bond holders should take a huge hit to help resolve the debt crisis in Europe.

Jupiter's Merlin multi-manager team has said yields on 10-year UK and US government debt could fall well below existing record lows if markets continue to price in a Japan-style economic outlook.

Capital Economics has lowered its year-end forecast for 10-year US treasury and UK gilt yields in light of a deteriorating growth outlook.

China's premier, Wen Jiabao, said the country is ready to help Europe through its current debt crisis, but is calling for Europe to recognise China as a full market economy.

European equity markets are enduring another volatile session as rumours of funding shortfalls and eurozone intervention affect sentiment.