Equity slump should boost UK yields over short term

equity markets

markets worldwide fall to multi-year lows on back of rising base rate concerns

Last week's equity market slump to two-year lows will provide a short-term boost to yields in the UK, after the number of high-yielding stocks has fallen by three-quarters in three years. According to Martin Currie's Scott McKenzie, the number of high-yielding companies in the UK has fallen from 160 to less than 40 due to rising equity prices over the past three years. McKenzie, who runs Martin Currie's UK Equity Income fund, noted high-yielding stocks are often defined as those producing the same yield as 10-year gilts. Over the past three years, 10-year gilt yields have risen from 4.3%...