gilts

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.

Over the past month losses have racked up across bond sectors after comments from the Federal Reserve signalling the end of quantitative easing spooked global markets.

Concerns over a potential end to US quantitative easing saw global fixed income markets slump in May, but further sudden sell-offs may be less likely.

The Ruffer Investment Company saw NAV hit a record high in April as soaring Japanese equities helped offset exposure to struggling gold miners.

Investors flocked to buy index-linked gilts in a Debt Management Office(DMO) auction yesterday, despite real yields being the lowest since the bonds were first offered in the early 1980s.

Ecclesiastical's Robin Hepworth is backing the rally in Vodafone shares to continue even if the M&A rumours surrounding the stock begin to recede.

Sanlam Private Investments' (SPI) head of fixed income Craig Veysey has bought back into the gilt market, viewing the UK downgrade as a ‘short term' opportunity to add exposure to the asset class.