'Lower for longer' has received new momentum with Brexit

Bond defaults at all-time lows

On 24 June, 10-year gilts rallied over 20bps on the 'Brexit' win, before yields fell to a new low below 1% last week, writes Kames Capital's Adrian Hull.

With all 'experts' predicting slower growth in both the UK and Europe, government bond yields will remain low for longer; indeed 'lower for longer' has received new momentum with this political decision. The path for the UK exiting the European Union will be uncertain and this is set to keep government bond yields at these lower levels. BoE governor Carney hints at summer rate cut With German 10-year yields hovering below zero it is difficult to see 10-year US treasuries not representing value at north of 1.5%. 'Lower for longer' is now common parlance for US rates markets despi...