The gilt complex

A combination of ultra-easy monetary policy and quantitative easing has offered formidable support to the gilt market over Q3.

However, the benchmark yield compressed by only six basis points (0.1%) during that time. What would have happened if these measures had not been in place? In many respects, gilts, along with credit markets, experienced a perfect summer. However, the next 12 months might not be so painless. Indeed, watching the gilt market is, potentially, like watching a slow train crash, and investors would do well to hear the rumblings. Firstly, from a macro perspective, there is not much left in terms of gilt yield declines. The asset class is under attack from several flanks, not least the eventual ...