Why the value proposition in UK bonds is 'daunting'

Brexit proving a headwind

"Plus ça change, plus c'est la même chose." UK bonds hardly need a French epigram to reflect today's investment dilemma.

But in a post-Brexit vote world, what changes we may have seen - political, economic and secular - have not improved the long-term return prospects for holders of UK gilts. Ten-year yields at 1.15% are more or less where they were at the end of June last year, while inflation has risen by 2% over the same period.  Will Brexit force UK to employ 'helicopter money'? Perplexed as investors are, the Bank of England's Monetary Policy Committee (MPC) appears to be no wiser. Having sounded the alarm in May, their latest, more dovish pronouncements suggest a faltering growth outlook this y...