Rates Spark: Hard to see a ceiling for gilt yields | Metals Mine

  • Rates Spark: Hard to see a ceiling for gilt yields

    From think.ing.com

    Gilt yields continue to rise on the back of the political turmoil around Labour’s leadership and yields can still push higher. The fear is that a new prime minister would have a looser hand when it comes to fiscal policy. If this is the case, then increased near-term government spending would make further Bank of England easing even less likely whilst adding to the issuance of government bonds. Besides political and inflation risks, we also identify increasing gilt supply as a slow-moving force pushing up yields. Whereas the Fed has significantly reduced the pace of quantitative easing, the Bank of England still ... (full story)

Comment Options
  • Story Stats

  • Related Stories