Government bonds

Fears over the end of QE in the US and stronger data from the eurozone caused UK and US government bond yields to jump on Monday, surprising investors.

Tapering panic has driven a major sell-off in government bond markets over the last month, but bond investors suggest there is scope for yields to go even higher from here.

Popular stories among our readers this week focused on asset allocation, as investors look for ideas on where the best income opportunities will be in years to come.

Giles Hargreave, manager of the Marlborough UK Micro Cap Growth fund, tells Cherry Reynard how he is positioned for the recent run of strength in his sector to continue.

Portugal's financial crisis worsened today as the country's bond yields spiked above 8% and shares plunged, following the resignation of several key politicians.

Bill Gross' $268bn PIMCO Total Return bond fund saw record outflows of almost $10bn in June as investors' flight from fixed income continued in earnest, according to reports.

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.

Bill Gross, the manager of the world's largest bond fund, has told investors selling treasuries they could be left disappointed if they overestimate the speed with which the Fed will wrap up QE.

It is "inevitable" Italy will need an EU bailout in the next six months, according to analysts at the country's second largest bank.

Enzo Puntillo, head of fixed income at Swiss & Global Asset Management, moved out of 30-year treasuries last month in his Julius Baer Total Return Bond fund as market fears grew about the possible tapering of the Federal Reserve's QE programme.