Global bonds rising and gilt yields high

Rising global bond yields have provided a negative backdrop for the UK bond market with a sharp sell...

Rising global bond yields have provided a negative backdrop for the UK bond market with a sharp sell-off lifting gilt yields from the historic lows of January to the highest levels seen so far this year. Despite the sell-off, gilt yields are still low and the UK market has outperformed the major overseas markets because of ongoing demand for gilts from UK pension funds and relative stability in interest rates. Many market participants are pricing in higher UK interest rates by the year end on the basis of higher or rising global interest rates, strong UK economic data and recently higher i...