Government bonds

Investors showed renewed confidence in Spain today, as a government bond auction saw excessive demand.

We look at key themes and events that have impacted investment over the past year.

BOND VIGILANTES

Legal & General Investment Management's top performing bond manager Richard Hodges is preparing his £1.8bn Dynamic Bond trust for more pain and heighted volatility to come next year.

European leaders have abandoned plans for bondholders to bear the brunt of sovereign debt collapses, following talks overnight to tackle the eurozone crisis.

The S&P 500 has risen 1.7%, with European equity markets also holding onto gains after German Chancellor Angela Merkel and French President Nicolas Sarkozy reached accord on the debt crisis.

Ever since outspoken investment veteran Jim Rogers predicted the commodities rally in 1999, his comments have been closely followed by investors worldwide.

Yields on Swedish government bonds have dropped to their lowest ever levels relative to Germany today as investors flee traditional safe havens amid the eurozone panic.

Aberdeen's emerging market debt team has warned against investing in Turkish local currency government debt after yields spiked to record highs.

The yield on 1-year German bunds turned negative today for the first time ever, according to Bloomberg data, as the European Central Bank looks set to ramp up measures to fight the debt crisis.