UK gilts offer opportunities after poor returns of 2006

There will be good buying opportunities in the UK gilt market in 2007 following a disappointing perf...

There will be good buying opportunities in the UK gilt market in 2007 following a disappointing performance last year, according to Aegon's Phil Milburn. Last year, the total return averaged at 0% and the expected peak in the fourth quarter failed to happen. "Normally, gilts rally in Q4 but that did not happen despite redemptions and coupons flowing into the market," says Milburn. Macroeconomic data was stronger than anticipated at this point and market participants had already positioned themselves accordingly. Growth in the UK was stronger than expected by investors and the yield rang...