UK bonds are more attractive to investors

2016 is going to be a challenging year for the global economy, as there are many uncertainties among EMs and commodity markets. The equity market fell on the first trading day of 2016 globally. Britain is to decide about its future in the EU this summer. The debt problem among the Eurozone has not been solved yet, and I do not see it could be solved by the end of 2016. The falling commodity prices and the worries about the EMs will affect the performances of many financial markets. UK bonds are cheaper than those of Spain and Italy, whose futures are more uncertain. Moreover, UK bonds have higher returns compared with those of US and Germany, which have relatively stable economies. Maybe the UK economy is expected to grow relatively slowly compared with the US economy; however, the UK government has a record and always pays back its bonds. In general, the UK bonds may become even more attractive in 2016.