Impact of QE on bond markets

aroominyork

The papers are reporting that £150bn of QE/bond buying is going to be announced. What does this mean for bond funds - especially strategic bond funds - and taking into account whether they predominantly hold gilts or corporate bonds; investment grade or high yield/junk; long dated or short dated? (Apologies for yet another thread trying to understand bonds but I don't think I'm the only person who finds them confusing.)

EdGasketTheSecond

It should move the price up a little short-term at least. However it pushes the bonds up to the point where there is hardly any return on them meaning they are not really attractive for anyone else to buy and pension funds for instance, can't get a decent, safe return  in order to pay their pensioners and hence get pushed into riskier assets as far as they are permitted.