Newton InSight

Yields on government bonds in the U.S., the UK and Europe fell (and prices rose) to unprecedented levels at the turn of the year as global economic conditions worsened significantly and as authorities began to move beyond 'orthodox' monetary policy measures in seeking to ease economic and financial-market strains. Those yields rose during the first quarter of 2009, but government bond markets should continue to be well supported by the uncertain economic backdrop and by the continuing actions of central banks. Selective investment in corporate bonds should be advantageous too.