Outlook for gilts rests on equity performance

Professional Adviser
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With yields on UK government bonds at low levels the scope for further capital gains is somewhat lim...

With yields on UK government bonds at low levels the scope for further capital gains is somewhat limited. But fund managers say that regular coupon bonds still deliver, which means they will continue to attract investors wanting security in a time of equity market volatility. Royal London Asset Management head of fixed interest Jonathan Platt says while the gilt market may be at a peak, prospects for further gains remain while the equities are under a cloud. 'The outlook for UK government bonds depends on the outlook for the equity market ' it will do the reverse of whatever the equity ...

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