UK seeing drop in yields while global bonds rally

Global bond markets have rallied recently, says Tony Dolphin, director of economics and strategy at ...

Global bond markets have rallied recently, says Tony Dolphin, director of economics and strategy at Henderson Global Investors, with the UK experiencing the largest drop in yields. The move down in gilt yields is supported by the potential for rate cuts in 2006, he says, with financial markets looking to have recovered from a spate of nervousness during October. "The US equity market is up 5% from its October low and 10-year bond yields have also fallen in recent days," says Dolphin. Looking at the sharp fall in UK yields, Dolphin says they have been affected by a combination of factors ...