Cielinski rules out spike in safe haven bond yields

Threadneedle's Jim Cielinski said investors concerned about a jump in government bond yields should instead prepare themselves for a long period of financial repression.

Cielinski, the head of fixed income at Threadneedle, said the low government bond yields witnessed in countries such as the US, UK and Germany will remain at current levels for a very long time because of policymakers' supportive actions. Benchmark 10-year US treasuries, UK gilts and German bunds have all reached record lows of under 2% over the past six months as worries over the eurozone drive investors' search for safe haven assets. "If it is brought on by markets being rigged by policymakers, poor value is not a recipe for a lot of losses," Cielinski said. "But when you buy a c...