Sometimes the market does something extraordinary while you’re looking the other way. Take UK gilts, for instance, where the 10-year yield has come down around 50 basis points (or around 0.5%) since hitting 4.25% in March, mainly in the past 10 days:
A big move in a big, liquid market
A few guesses as to why:
- The UK has taken on ’safe haven’ status in the face of Greek woes
- The market is satisfied with all the parties in today’s election
- People have got jumpy, and run away from risk
Long-time readers will know I don’t hold gilts and am waiting for a yield of at least 5% on the ten-years before I start buying.
Drinks are on you this month!
(Source: Fixed Income Investor)
{ 4 comments… read them below or add one }
Great, innit. Tempted to top-slice my gilts rather a lot, these prices can’t hold. You’re right that BP looks oversold, also Aviva too.
Wow. Quite the melt-down we’re going for this week. Can Cameron save the FTSE?
right, the euro rescue plan is on and shares are soaring. will that mean yields creeping up if dave and nick dont sort themselves out?
Well I think UK yields are going up anyway, once the affect of QE eases off and people regain their risk appetite. (StockTickle contributor Lemondy disagrees!)