Government bonds could break through 'crazy' record lows in 2015

A fresh flight to safety will ensure government bond yields break through "crazy" record lows again in 2015, Brandywine bond manager Regina Borromeo has said.

European government bond yields have hit record lows again this year, as the threat of deflation stalks the continent, while yields on benchmark UK and US debt have also dropped sharply from a starting level of 3% in 2014. Even now, yields across the developed world remain historically low, with Japan's 10-year bonds at new lows of 0.41%, Germany's equivalent at 0.69%, and France at 0.96% as of last week. "German bunds yielding 0.69%, that is crazy. But you cannot be bearish on bonds because there are technical factors as to why there is a safe haven bid in place," Borromeo (pictured)...