Gilts an attractive spring proposition

Despite the low levels of UK government bond yields, the gilt market remains one of the more interes...

Despite the low levels of UK government bond yields, the gilt market remains one of the more interesting major markets as we move into the spring. Recent price action has been determined primarily by the activity of pension schemes that have been significant buyers of long maturity gilts. They are using gilts as a means of reducing interest rate risk within portfolios. Legislative and regulatory changes have underpinned this move and led to a divergence between prices in the UK bond market and price action in other major global markets. Many investors have been caught on the wrong side...