10-year UK gilts could go negative but are still desirable - Aegon AM

Bonds continue to offer liquidity

Government bonds continue to offer value to investors, according to Aegon Asset Management, which still considers gilts attractive, even if yields go negative.

Investors have flocked to government bonds this year as they provide a safe haven in times of crisis. However, yields have been negligible, with some experts warning they could go into negative territory. The downward spiral: Bond yields going 'ever lower for ever longer' Colin Finlayson, co-manager of the Aegon Strategic Bond fund, said that while some government bonds could turn negative, they should still be considered desirable assets in the current climate. "The lessons from Europe have shown that negative yields have not reduced the attraction of government bonds in times ...