Gilts: Will market uncertainty support or sink the asset class?

Bull bond market potentially coming to an end

Since the Brexit vote, the gilt market has experienced a high degree of volatility, as it rallied in the immediate aftermath of the vote as the market correctly anticipated Bank of England policy easing given the uncertainty created by the vote.

More recently, yields have backed-up, with the 10-year gilt yield currently above 1% as the market anticipates a reduced probability of further interest rate cut by the year-end given sterling's recent fall in value.  Is this 'the beginning of the end' for multi-decade bond bull run? The gilt market is therefore at a crossroads, with many analysts believing the uncertainty created by Brexit and the potential for a period of weak growth is likely to be supportive to the asset class. However, there are also a number of analysts that view the recent fall in sterling's value as a signific...