Government bonds

The first AAA-rated bonds issued by the eurozone's new bailout fund have been snapped up by Asian and Middle East investors in a €5bn (£4.3bn) auction.

German bond yields are climbing as European leaders consider increasing the €750bn rescue fund to help countries needing bailouts.

M&G's Jim Leaviss says an interest rate rise in the UK could be "GDP suicide", although the Bank of England may still succumb to inflationary pressure.

Government bonds are unlikely to deliver strong returns in a low interest rate environment going into next year, warns Jupiter CIO John Chatfeild-Roberts.

ON BONDS

Portugal has successfully issued €500m of short-dated government bonds, but at a higher yield than its previous auction.

Portuguese 10-year government bond yields were steady in early trading, ahead of a €500m bond auction by the country's government later today.

ON BONDS

BONDS

VAM Funds has launched a new Global Government Bond vehicle, which aims to generate cash plus returns through AAA and AA-rated sovereign securities.