Bond and equity yields will remain extremely low this year as a result of demographic changes and a decline in savings, the Barclays Wealth Equity Gilt Study 2010 reports.

According to Tim Bond, head of asset allocation at Barclays Capital in London and co-author of the study, bond yields for 2010 will be as low as 1.5%, while equities will fare little better with yields of 7%. Demographic shifts are to blame – more acutely in the developed world but also in many developing countries. This means