gilts

M&G's Richard Woolnough has said fixed income investors should overcome their fear of duration and embrace an expected uptick in 100-year bond issuance this year, but peers are sceptical about the bonds.

M&G's highly-rated bond fund manager Richard Woolnough has said he would raise rates this year if it were up to him - but said such a move could present a buying opportunity.

The Scottish government will be able to issue its own bonds from 2015 in a 'historic' devolution of borrowing powers, the Treasury has announced.

Nick Gartside, J.P. Morgan Asset Manegement's global fixed income CIO, explains why he expects any further sell-off in fixed income to be more muted, after the cost of shorting government debt jumped.

The Bank of England has again moved to temper expectations of an early rate rise, despite the UK unemployment rate dropping to close to the crucial 7% mark this morning.

A year hyped as the start of a great rotation from bonds into equities actually saw more of a trickle out of fixed income, but it was not plain sailing for bond funds.

Update: Benchmark ten-year gilt yields have hit a fresh two-year high of over 3% after the Bank of England opted not to release further ‘forward guidance' earlier this afternoon.

The rise in bond yields during May and June has left few parts of the bond market unscathed, and UK bonds were very much part of this move.

BOND SELL-OFF

This week has seen further volatile moves in markets - particularly within fixed income as investors unwind positions in government and emerging debt - while Chinese equities also hit the headlines on fears of a slowdown in the country.