Gilt yields spike on positive UK growth; Gilt manager expects 'major losses'

Gilt yields have spiked strongly today after the UK recorded twice the expected growth in the third quarter.

The 0.8% third quarter growth, double the 0.4% economist consensus, has driven the yield on the benchmark 10-year gilt up 12 basis points to 3.04%, a price decline of £1.08. Prices on all longer dated gilts are more than £1 lower, while the 2015 gilt has dropped 73p. Charteris' Ian Williams, manager of the £100m City Financial Strategic Gilt fund, is warning investors of dramatic losses for the asset class. "We are battening down the hatches. We have shortened duration right up and preparing for the roof to cave in," Williams says. "Investors are not quite convinced yet on a UK ...