Government bonds

ON ASSET ALLOCATION

OMAM's Stewart Cowley has said the global bond market is in the last throes of a rally, even as the Federal Reserve looks to cut yields via Operation Twist.

High-yield products may look like other bond offerings, but they do not act like them, writes Arif Husain, director of fixed income at AllianceBernstein.

Bob Michele, global CIO of fixed income and currency at J.P. Morgan Asset Management, has said Greek bond holders should take a huge hit to help resolve the debt crisis in Europe.

Jupiter's Merlin multi-manager team has said yields on 10-year UK and US government debt could fall well below existing record lows if markets continue to price in a Japan-style economic outlook.

Capital Economics has lowered its year-end forecast for 10-year US treasury and UK gilt yields in light of a deteriorating growth outlook.

China's premier, Wen Jiabao, said the country is ready to help Europe through its current debt crisis, but is calling for Europe to recognise China as a full market economy.

European equity markets are enduring another volatile session as rumours of funding shortfalls and eurozone intervention affect sentiment.

RBS expects Greece will experience a hard default this December in a move it says will cause "violent contagion" in global markets.

PIMCO bond fund manager Bill Gross has acknowledged he made a mistake in betting so heavily against US government bonds earlier this year.