What is going on with the UK gilt curve?

    The difference between the yield on a five-year government bond and a 30-year government bond is now 130bps (1.3%), which is the steepest level of curve since 2016.  Typically, as you can see from the chart above, when interest rates are higher, you have flatter curves, and when interest rates are lower, you have steeper curves. This makes intuitive sense as when current interest rates are on the floor - such as in 2016 when they were 0.5% - the future path for interest rates has to be higher, which leads to a steeper curve. The opposite is true when current interest rat...