Treasuries look the pick of government bond markets

The backdrop for fixed interest apparently leaves few opportunities for significant capital gains among the major government bond issues in the short term. While worldwide inflation is seemingly under control, global growth is picking up, leaving a potential threat to the asset class in the future. Joe McKenna, fund manager at Britannic Asset Management, said: "The government bond markets will not recover until second half of 2000 at least. The US economy will continue fairly strong this year, the UK should keep on growing, while Europe is recovering and Japan is at least getting better. ...