Gilts and US Treasuries gain from low liquidity

European bond markets are looking attractive once again now economic prospects are improving. Conversely in the US, which benefited from the flight to quality during the financial crisis of last year, prospects are dimming. Stuart Steven, investment manager at Britannia Asset Management, says: "We have been overweight US and UK markets but we are reviewing our strategy. We are a little more relaxed about Europe on the currency view. The euro has stabilised and there are better prospects for the economy. The fact that the US may slow down argues in favour of Europe. Steven thinks that for ...