Markets still expecting a soft landing

As long as the crisis in the Middle East and high oil prices persist, government bond markets will continue to benefit from safe haven status. However, the yield curve is reflecting the risks and the longer end is under some pressure. A soft landing remains likely and bond markets offer good value, so we are happy to maintain our fully weighted positions. The exception is Japan, which we continue to be heavily underweight. The setback in the corporate bond market offers opportunity for selective investment, particularly in the UK, where the sector could benefit from the potential pens...