Bond bulls on the run?

A move out of safe-haven assets has seen government bond yields spike, but Tim Gardner, co-manager of Legal & General's Multi-manager fund range, says they should not be dismissed just yet.

For multi-asset investors allocating to the fixed income market, the past couple of months have certainly provided some food for thought with regard to core government bonds. Yields spiked in mid-March driven in large part by firming economic data and a continued move out of so-called ‘safe-haven’ assets into riskier plays. Improving economic data has been particularly prevalent in the US, where job growth has been ahead of expectations (non-farm payrolls have been back above 200,000 over recent months) and retail sales have been strong. Indeed, at its meeting in March, the US Federal...