U.K. Yields Hit Record Low on Election Risk, Global Trade Woes
- Gilts outperforming peers amid Johnson rhetoric: Aberdeen
- Sterling is likely to hit fresh lows, according to Nomura
This article is for subscribers only.
U.K. government bonds rallied, driving benchmark yields to a record low, as global risk sentiment worsened and speculation swirled that the nation’s new Prime Minister is preparing for a general election.
Ten-year gilt yields slipped below 0.5% for the first time on a potential increase in U.K. political uncertainty, with Premier Boris Johnson’s spending plans fueling speculation about a snap vote even as he denied it. The pound erased early declines that were fueled by a broader risk-off move across markets after the latest escalation in U.S.-China trade tensions.