gilts

The yield on UK gilts has fallen to a new record low during trading today, as demand for safe havens picks up once again following indecision from the Fed over expanding its stimulus programme.

M&G's Richard Woolnough said the possibility of another £375bn in asset purchases by the Bank of England means gilt yields could remain at record lows for years to come.

The Bank of England will continue with its quantitative easing programme until it owns all of the gilt market not controlled by life companies, according to Schroders' Gareth Isaac.

Gold could be the best asset class to own in 2013 if inflation starts to pick up following major stimulus programmes from central banks, Fidelity's global strategist Andrew Wells has said.

The UK Treasury has called off its weekly gilt auctions for a four-week period between mid-July and mid-August during the Olympics.

Scottish ministers could soon have the power to issue their own bonds, chief secretary to the UK Treasury, Danny Alexander, is set to tell the Glasgow Chamber of Commerce today.

Fidelity's Ian Spreadbury has said he is short German interest rate risk in the view that the eventual move towards a 'eurobond' solution will cause yields to rise.

Greece is only being kept in the euro to enable banks in northern Europe to retrieve money they have in the stricken nation, said Old Mutual's Christine Johnson.

The latest sale of index-linked 50-year gilts was completed in record time today, as investors snapped up £4bn worth of debt.

Star bond fund manager Richard Hodges has warned the UK is likely to lose its coveted AAA-rating next year as the ongoing crisis takes its toll.