M&G head of retail fixed income Jim Leaviss believes government bonds still offer value despite the yield on the 10-year gilt approaching historic lows last week.
The Debt Management Office has raised almost half of its bond sales target for this financial year in just four months on continued strong demand for gilts.
The Bank of England has made a £5.5bn full-year loss on the assets bought under its quantitative easing (QE) programme to prop up the battered UK economy.
Pimco, the world's biggest bond manager, has turned bullish on UK government debt, just six months after it warned gilts were resting "on a bed of nitroglycerin".
The UK gilt market rallied in the run-up to the Budget and while Osborne was giving his speech, but this initial growth spurt now seems to have moderated.