One of the unlikeliest safe havens in 2011 was UK gilts (bonds).
Because of its high debt load and dreadful economy, people don’t frequently talk about gilts as a safe haven on part with US Treasuries, but they performed just as well (for reasons that we explained here).
Today yields on the 10-year gilt are dropping below 2% for the first time since Bloomberg started keeping score, perhaps in keeping with a year end move by managers to get into assets that have performed well lately.
#UK 10 year gilt yield falls below 2% for 1st time (since 1989 when BBG started collecting data) hitting 1.999%.
— Linda Yueh (@lindayueh) December 23, 2011
Here’s a look at their amazing year.
Read more: http://www.businessinsider.com/uk-gilt-yields-fall-below-2-2011-12#ixzz1hFzvWEgu
