Yields on the 10-year gilt have fallen to an all-time low below 2.77% as recessionary fears resurface across the globe.
UK 10-year bond yields are now below the previous intra-day low of 2.79% seen in August 2010, having ended Monday trading at their lowest ever closing level of 2.8%. Weak manufacturing data in both the UK and the US has compounded concerns over last week's disappointing GDP figures for both countries. UK GDP figures grew at an annualised rate of 0.4% in the second quarter; US GDP rose by an annualised 1.3% and figures for the two previous quarters saw significant downwards revisions. "Of concern for investors is the real yield on these bonds. With UK RPI running at 5%, the real yie...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes