I am struggling to understand bonds. I have this one in my managed portfolio BlackRock Overseas
Government Bond Index Fund, Price £1.18, current yield 1.22%, yield 1.93% nominal average life 8.43yrs. https://www.trustnet.com/factsheets/o/g6ie/ishares-overseas-government-bond-index-uk-d-acc
If there is an equity crash, generally bonds go up in value. But if I was shopping for bonds, I would go for short-dated 5% yield bonds. And whilst there are better bonds on the market, the value of this one BlackRock Overseas Government Bond Index Fund will not really rise. So the only way to increase its value is for inflation to plummet in order to dry up the supply of high yield bonds.
So for this one bond fund, would it take both an equity crash and almost zero BOE rates for it to increase in value, a market crash on its own would not be enough? And a slight market dip, e.g mild recession, certainly not enough?
Is my understanding correct on this? If not, why?
Government Bond Index Fund, Price £1.18, current yield 1.22%, yield 1.93% nominal average life 8.43yrs. https://www.trustnet.com/factsheets/o/g6ie/ishares-overseas-government-bond-index-uk-d-acc
If there is an equity crash, generally bonds go up in value. But if I was shopping for bonds, I would go for short-dated 5% yield bonds. And whilst there are better bonds on the market, the value of this one BlackRock Overseas Government Bond Index Fund will not really rise. So the only way to increase its value is for inflation to plummet in order to dry up the supply of high yield bonds.
So for this one bond fund, would it take both an equity crash and almost zero BOE rates for it to increase in value, a market crash on its own would not be enough? And a slight market dip, e.g mild recession, certainly not enough?
Is my understanding correct on this? If not, why?