Gilts are financial instruments the UK government issues to borrow money from investors to pay for goods and services that it cannot cover with tax revenue. Bond prices and yields move inversely due to the return – the coupon – investors receive staying the same and being a proportion of the...
Both the pound - at $1.08 - and bond yields - the interest rates demanded to hold UK government debt - were relatively stable on Thursday morning asthe PM defended the government's growth planand the handling of it following the market backlash. Sterling did fall back against the euro ...
LONDON (Reuters) - British markets are among the biggest victims of a global bond selloff that has spilled over into currencies and stocks this week. Yields on long-dated British government bonds are at their highest in decades - putting government finances under pressure - while sterling is st...
and John Y. Campbell, 1997, Inflation, real interest rates, and the bond market: A study of UK nominal and index-linked government bond prices, Journal of Monetary Economics 39, 361-383.David Barr G,John Y Campbell.Inflation,Real Interest Rates and the Bond Market:A Study of UK Nominal ...
Yields move inversely to prices. UK borrowing costs have risen much faster so far in 2025 than other big economies, as investors worry about the government’s heavy borrowing needs and the growing threat of stagflation to the economy. “It’s a global sell-off, but being compounded in the ...
British government bond yields dropped from multi-decade highs hit in previous days. Sterling fell after the figures were published but then reversed course to be broadly unchanged on the day. The BoE has said Britain's persistent inflation pressure means it will move only gradually with ...
As government bond yields typically decline as central banks cut interest rates, DB pension schemes should consider further increasing the level of interest rate hedging within the scheme, both to take advantage of the current level of government bond yields and to protect themselves a...
"Given the scale of the equity market falls since early April 2025, and the fall in government bond yields, it is possible that some DC savers may see a reduction in retirement income of up to 20%," a report by SPP cited by industry outlets said. ...
“If the new Government’s walk matches its talk we expect the sector to re-rate, and in the very short term we suspect that the talk alone will be enough to lift share prices,” they added. Expect to see the reinstatement of housing targets, refining of the greenbelt, a reform of...
"Yields going up and gilt prices going down, is actually very positive for pension scheme funding levels," reducing the value of a DB pension scheme's liabilities, he said. "The better the funding level, the less you need to allocate to growth assets, because you just don't need that ...