Gilt yield anomaly likely to worsen

Thirty year gilts currently yield only around 4.75%, while ten year gilts yield 5.9%. Why is this so when the outlook for the UK economy is so positive and short-term interest rates appear set to rise from their current level of 5.25 There have been any number of reasons put forward for this anomaly: changes to the government's Minimum Funding Requirement (MFR); the Close Matching rules of the life offices; and the problems of guaranteed annuity products sold by a number of pension providers Yet most of these are simply symptoms of the underlying problem: that there is an increasing numbe...