The latest round of quantitative easing (QE) sparked a surprise rise in gilt yields yesterday, despite fears of long-term falls which could increase pension scheme liabilities.
Yeilds on ten year gilts fell to 2.23% at one point yesterday and 30-year gilt yields dropped as low as 3.35% after the Bank of England (BoE) announced it will inject £75bn into the economy. Despite this, gilt yields ended the day higher for some maturities because of rising confidence in global markets. Benchmark ten year gilts ended the day at 2.41%, up 0.15% on the day, and 30 year gilts ended at 3.36, up 0.04% on the day. However asset managers believe a further tranche of QE would put pressure on gilt yields over the longer term. J.P. Morgan Asset Management European strate...
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