Yield surge to 4.2% on ten year gilts bolsters DB pension funding levels

Yields on benchmark UK government bonds have risen more than four-fold

Jonathan Stapleton
clock • 1 min read

Yields on benchmark ten year government bonds soared to more than 4% this morning (26 September) as market concern over the chancellor’s Mini Budget on Friday continue.

According to data from Refinitiv IFR Markets, yields on benchmark ten-year gilts rose from 0.974% at the beginning of this year to 2.241% at the end of June and 2.803% at the end of August. This month they had risen to 3.139% at the end of 16 September and 3.495 at the end of 22 September, the day before the chancellor's Mini Budget. By the close of last Friday, yields had spiked to 3.827 and this morning yields pushed up further, breaching the 4% barrier to stand at 4.137 by 9:30am today before reaching 4.2% in the afternoon. Gilt Yields 10yr since 1990 Infogram XPS Pension...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

DB pensions industry 'working against' govt finance agenda

DB pensions industry 'working against' govt finance agenda

There is little incentive for schemes not to take risk off the table

Jonathan Stapleton
clock 20 October 2023 • 2 min read
Preparing for October's 'dramatic' pension statement changes

Preparing for October's 'dramatic' pension statement changes

Changes on 1 October set to have major impacts on estimations

Hope William-Smith
clock 10 October 2023 • 2 min read
Pension transfer activity falls to lowest level in over five years

Pension transfer activity falls to lowest level in over five years

Transfer activity now half of that measured this time last year

Jonathan Stapleton
clock 31 August 2023 • 1 min read