Gilts meanwhile beat cash. But the lead has changed hands a few times – most recently during the 1970s inflation outbreak towards the end of the UK’sbiggest bond crash. A few other things to note: The chart showsrealhistorical asset class returns. So the returns strip outinflation, which...
In practice, yields for one-month bills closely track the prevailing Bank Rate. You can also see that the yields shift as market participants anticipate the Bank of England’s interest rate decisions. Yields are quoted asannualised yields. That is, they represent the return you’d make if y...