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“Bond Market Rout” in the UK (like in the US) Only Pushes the 10-Year Yield into Low End of Old Normal after Many Years of Interest Rate
The 10-year yield of UK government securities rose to 4.82% today, the highest since July 2008. The 30-year gilt yield rose at one point today to 5.47%, the highest since 1998, though it backed down to 5.38%. So the UK is a little ahead of US Treasury yields (4.69% and 4.93% respectively). There was a lot of handwringing in the financial media today and recently about those surging yields, with terms like “gilt market rout” getting into the headlines, and some even seeing a “return of the bond vigilantes,” etc. etc. But wait a minute… Back on July 29, 2020, the 10-year gilt yield had dropped to an all-time ... (full story)