Yields hit 20 year low

UK two and 10 year gilts hit low, long end of market looks dangerous

Intermediaries are likely to have a difficult time finding income for their clients using bond vehicles, as yields fall to 20 year lows. Paul Read, joint head of fixed interest at Invesco Perpetual, said the UK two and 10 year gilts have hit a low and the long end of the market is dangerous as it has been held up by the minimum funding requirement. He said: 'Short UK gilts may be the most attractive Government market and at 4.5%, the yield is not that great. Since 11 September, all credit markets have sold off. They may be set to improve but government markets will continue to be under ...