It has been some time since the outlook for UK gilts was determined solely by domestic circumstances...
It has been some time since the outlook for UK gilts was determined solely by domestic circumstances and there is little doubt events in the US and Europe still largely set the parameters However, the inverted shape of the yield curve, particularly between bonds of 10 years and 30 years maturity is a uniquely UK quality In the UK switching between maturities would result in a drop of 93 basis points whereas in the US there is a pick up of 15 bp and in Germany 60 bp The shape of the UK curve is not unusual, determined as it is by a demand for longer-dated assets by life and pensions compa...
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