Sharp drop in confidence for UK govt bonds

INVESTOR sentiment towards UK government bonds is falling at a record rate, according to a new survey out today.

April has seen the largest recorded fall in sentiment towards UK government bonds, with net investor sentiment down five percentage points to 16 per cent, according to the Lloyds Bank private banking investor sentiment index.

Lloyds said UK corporate bonds have also seen a decline in sentiment in the past month, falling to 14 per cent, while sentiment towards UK shares has remained relatively strong at 37 per cent.

Meanwhile, sentiment towards US and Eurozone shares moved higher, with American shares at an all-time high of 19 per cent and sentiment towards Eurozone shares recording the largest monthly improvement among all asset classes, up by more than five percentage points.

Lloyds also tracked annual change of actual performance across asset classes, finding despite recent downturns, all four sterling-dominated classes (UK government bonds, UK corporate bonds, UK shares and UK property prices) posted increases in returns in the past year.