Skandia Investment Group's head of research and portfolio manager Adam Smears (pictured) discusses the implications of record low 'safe haven' bond yields.
Recently UK yields have moved below 1.8% as the market remembered the unresolved issues in the eurozone. These yields are at historic low levels, and the question is why? 1.8% is not a lot given inflation is growing at 3.5% - you would be better off heading into your local Tesco, buying a basket of goods with your savings and selling it on (just remember to freeze the perishables!). Gilt yields are at all-time lows and definitely do not represent good value, so why are they at this level? Clearly, there are not many places to store your money that are safe in the event of a messy end in ...
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