Can long-dated yields reach new lows?

Fund manager's comment

UK interest rates are in a state of flux. If short-term interest rates are coming down, does this me...

UK interest rates are in a state of flux. If short-term interest rates are coming down, does this mean that long-dated bond yields are heading lower, and can long-dated yields reach new lows? There has been a significant recent supply/demand imbalance. From 1998 to 2002, issuance of long-dated fixed rate gilts was around £21bn, while index linked issuance was around £13bn. This compares with estimated UK total pension fund assets of £700bn, so that even a 20% allocation to UK bonds would represent £140bn. Given that around two-thirds are estimated to have been held in shorter maturity ass...