Europe's largest asset management company is increasing its holdings of UK government bonds amidst market turbulence.

On January 10, Amundi, Europe’s largest asset manager, increased its holdings of British government bonds in its global portfolio at the time of the dumping of British government bonds this week, and said that British Chancellor of the Exchequer Reeves may have to cut spending due to soaring borrowing costs. Gregoire Pesques, the company’s chief investment officer, said on Friday that the rise in bond yields this week makes potential returns more attractive, and that possible spending cuts would reduce inflationary pressures and slow the economic rise, which could lead to more rate cuts. "The Office for Budget Responsibility (OBR) in the UK will revise its assumptions in March. In the last report, they put a GDP rise rate of 2% this year. This seems a bit optimistic. "Amundi is one of many asset managers that still hold on to gilts.