U.K. Bonds’ World-Beating Gains Become Losses Surpassing Peers
- Global debt selloff is spurred by wagers QE reaching limits
- Gilts lead losses amid buoyant economy since vote to quit EU
Major: Fair Value for Gilt Yields Nearer to 1% Than 0.5%
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Spurred by a post-Brexit economy that’s defying the doomsayers, gilts are not only joining the global government-bond selloff but are leading it.
U.K. 10-year securities extended their slide today, having lost 1.2 percent in the week through Thursday, the biggest drop in Bloomberg World Bond Indexes. Sovereign securities are tumbling globally amid speculation major central banks are reaching the limits of their capacity to inject stimulus. Gilt yields are now higher than they were when the Bank of England cut interest rates and boosted asset purchases on Aug. 4.