Bond managers fear for gilts and sterling

Henderson head of retail fixed income John Pattullo believes the hung parliament scenario is "a mess" and only adds to the uncertainty in current global markets. "Gilts went up at first at 1am when the market thought the Tories could get in, but that reversed pretty quickly," Pattullo says. "We are quite short gilts, so for us it is not too bad. But for the market as a whole, it will be a worry how long this uncertainty drags on for. "After the ‘fat fingers' episode in America last night and the Greek mess, there is already a flight to quality - German bunds are at 2.77% right now....