UK 10-year govt bonds up by 4.6%

The very low yields that UK and global bond markets were reaching in the second quarter represented ...

The very low yields that UK and global bond markets were reaching in the second quarter represented a 'bubble'. From a low of 3.8% mid-June, UK 10-year government bonds have shot up to 4.6% currently. Gilts had proved very popular earlier in the year among investors who were pessimistic about global economic growth, rising debt and slowing consumer spending. Investors were happy to buy gilts on falling yields because there was little expectation that the Bank of England would lift rates. Since then, attitudes have changed markedly. The atmosphere in the market has become much more upbe...