Investors in government bonds could be pleased to hear JP Morgan Asset Management has stated last month was a good one for the funds.
Offering his outlook on the market during the first month of 2012, Nick Gartside, International Chief Investment Officer for Global Fixed Income, stated that it had been a good month for all bonds.
He explained that while they were still at the bottom of the leader board, they managed to get a good return rate of 0.3 per cent, which rose to 4.5 per cent for EMFX.
Mr Gartside noted that in the main part this reflected the power of the Federal Reserve's verbal easing, as well as the continued impact of the three year refinancing operation by the European Central Bank.
"The real impact of central bank activity has also been to re-open markets. Eurozone corporate bond issuance was €46 billion (£38 million) in January (around the same as last year) split equally between financials and non-financials," the expert added.
Offering their own view on government bonds, BNY Mellon Asset Management recently suggested those offered by the UK, the US and Japan may not increase greatly in the short term.
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