Investors looking to escape the bear market in equities inevitably turn to government bonds, and mos...
Investors looking to escape the bear market in equities inevitably turn to government bonds, and most markets have posted good returns so far this year. Economic data and the path of interest rates will continue to weigh on the markets, but technical factors will also play a part. Gilts started the year strongly, with yields falling in response to expectations of rate cuts and a benign inflationary outlook. The short end has proved particularly attractive and yields have fallen as a result. But with one-year yields now below 5%, this sector of the curve looks fully valued given the more...
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