10-year gilt yields to increase slowly

Fund manager's comment

Being a fixed income manager, I feel compelled to mention that interest rates went up 0.25% to 3.75%...

Being a fixed income manager, I feel compelled to mention that interest rates went up 0.25% to 3.75% in November. I believe the next rise in rates is likely to come early in 2004. I would like to have a strong view about the magnitude of rate rises next year but I am in line with consensus - a rise of 0.75%-1%. In spite of November's interest rate rise, UK gilt yields were more or less unchanged. The benchmark 10-year gilt yield oscillated around the 5% mark, finishing the month at 5.05%. Corporate bonds, too, made little headway - their lacklustre performance largely attributable to ...