UK Markets Claw Back Losses as Buyers Emerge After Historic Rout

Bond yields head for biggest slide since 2009, pound climbs 1%
M&G fund manager looks to buy UK gilts, may add to exposure

WATCH: The BOE could have become mired in “a game of cat and mouse” with the markets if it had delivered an emergency rate hike in response to the pound’s recent plunge, according to Rabobank.Source: Bloomberg

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By Alice Gledhill and Libby Cherry

September 27, 2022 at 8:11 AM UTC

Updated on

September 27, 2022 at 12:14 PM UTC

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Investors are starting to dip back into UK assets after a historic bond selloff and a collapse in the pound to record lows.

Eric Lonergan, a portfolio manager at M&G Plc, said he’s inclined to take a small long position in gilts, with a view to increasing exposure later. In a sign others joined him as market panic eases and the pound recovers, two-year bonds rallied to send yields heading for the largest drop since 2009.