gilts

Is it time for investors to look again at gilts?

The Scottish government will be able to issue its own bonds from 2015 in a "historic" devolution of borrowing powers, the Treasury has announced.

Henderson Strategic Bond fund manager John Pattullo has moved aggressively in to gilts in a bid to hedge against a worldwide deflationary shock caused by the chaos in emerging markets.

Investor confidence in UK shares rose at the start of February, according to the latest Lloyds Bank Private Banking Investor Sentiment Index, to reach its highest point in the survey's one year history.

Multi-asset managers are finding renewed opportunities in UK government bonds as they try to eke out value for their portfolios at the start of 2014.

GILTS

European financials are among the day's biggest fallers as benchmark French and German indices struggle amid intensifying geopolitical concerns.

FIXED INCOME

The increasing likelihood of former US treasury secretary Larry Summers becoming Fed chairman next year has prompted a further spike in bond yields, analysts suggest.

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.