Yields on UK gilts jumepd in early trading as investors reacted to the threat of a possible downgrade of the UK's AAA rating.
Billionaire investor Warren Buffett has warned US treasuries, gilts and other bonds are among the 'most dangerous of assets' at current levels.
Investors can continue to buy 10-year debt issued by safe haven governments in 2012, with the risk of losing vast sums diminished, said Kames Capital's David Roberts.
Eclectica Asset Management's Hugh Hendry has cut his exposure to gilts as yields have fallen to their lowest ever level in recent weeks.
Schroders' head of global macro Bob Jolly has revealed he is shorting long-dated treasuries and German bunds in the expectation the ongoing economic recovery will reduce demand for safe havens.
Gilts are seeing prices fall and yields climb after the worse than feared decline in the UK economy was revealed this morning.
The UK's public debt pile has climbed above £1trn for the first time ever, after the government borrowed almost £14bn last month.
Gilt yields have fallen to another record low as investors' appetite for UK debt remains strong amid eurozone woes.
M&G Investments bond manager Richard Woolnough has revealed he is currently favouring US treasuries over gilts, as the latter are already priced for more quantitative easing.
The yield on gilts tumbled near to record lows this morning as investors piled into any sovereigns which have retained their AAA-status after widespread EU downgrades.