gilts

Leading fund managers believe gilts now look like the next safe haven bond market to come under threat ahead of DMO sale this week.

The yield on German bunds has risen above UK gilts for the first time since 2009 after Japan shifted out of bunds overnight following Germany's disastrous debt auction.

So suddenly no-one wants to lend to Germany for the next ten years - hardly surprising because by lending to Germany investors are effectively lending money to Greece, Portugal and even Italy.

Kames Capital's bond fund manager Stephen Snowden said the ongoing crisis in Europe has left gilts looking much more secure than bunds in the medium term.

Swiss bonds were returning a negative yield during trading today as the country's government sold 6 month paper at -0.148%.

Investors should have been buying portfolios of gilts, treasuries and bunds, as well as commodities, while avoiding major indices, to maximise returns in 2011.

Gilt yields fell to a new record low yesterday as investors sought out safe havens from the eurozone crisis.

Fidelity's star bond fund manager Ian Spreadbury has warned some parts of the bond markets are under more pressure than during the height of the credit crunch.

Fund inflows in September were at their lowest level since the credit crunch hit markets in October 2008, while quarterly figures were down two thirds on last year.

The UK's Debt Management Office (DMO) has launched what it believes to be the longest dated inflation-linked government bond in the world after unveiling a tranche of 50-year gilts.