PRESS ROOM
UK Gilt Yields remain low as Brexit uncertainty looms
Monday 21st September '20
UK Government Bond (Gilt) yields have dropped significantly since the start of the year. Investors have turned to government bonds in the wake of the sharp economic contraction in the first half of the year causing the entire curve to shift downwards. While economic data is showing signs of recovery, the UK still faces considerable uncertainty given the lack of clarity on Brexit and the country’s future trade relationships. With the Bank of England indicating last week that it was open to the possibility of negative interest rates, 10-year UK gilt yields have fallen to around 15bps compared to around 82bps at the start of the year.