Global growth to benefit non-government bonds

Fixed interest fund managers are tending to favour bonds over government stock in the belief the expected pick up in global growth will not produce a beneficial environment for sovereign debt. Paul Read, fixed income fund manager at Perpetual, is particularly favourable towards European high yield corporate bonds with growth in Europe expected to be strong in 2000. He says: "From an international point of view we are not particularly keen on the government bond markets. We prefer US Treasuries and German bunds to gilts as 30 year gilt yields are significantly below those in US and Germany...