M&G's Leaviss: How have bond markets been impacted one year on from Brexit vote?

Favouring non-sterling denominated bonds

As we mark the first anniversary of the referendum vote, Jim Leaviss, head of retail fixed interest at M&G Investments, comments on the UK economy and the outlook for bond markets.

One year on from the Brexit vote and a number of its knock-on effects for the UK economy are still very much in focus. Sterling's steep decline, for example, was among the immediate headlines after the referendum, and the currency's lower value has persisted to become the main driver of rising inflation. In turn, this 'cost-push' (= 'bad') inflation is straining consumer confidence and real income levels, which is a headwind that will need close monitoring in the UK's heavily consumption-driven economy. M&G's Leaviss: Will Yellen commit to a second term? It is a key point just n...