US Treasury sell-off causes rise in gilt yields over 2006

Gilt yields have risen considerably over the course of this year, due in part to the sell-off in US ...

Gilt yields have risen considerably over the course of this year, due in part to the sell-off in US Treasuries. In January the yield on 10-year gilts was around 4%, but by mid June it was around 4.6%. The lower rates in January had followed on from a supply shortage in the market in December 2005, due to pension fund demand. There was also an expectation of interest rate cuts in January, that helped to keep coupon rates lower. However, since January there has been a rising trend in gilt yields, including a 10 basis point rise at some parts of the curve over the last month. Global bond ma...