Derrick: It's Clear Carney Sees Direction of Travel Lower
After the Bank of England this month cut its key interest rate for the first time in seven years and began its expanded bond-purchase program, yields on 10- and 30-year securities fell to records. While the dividend yield on U.K. companies has also dropped with rising stock prices, FTSE All-Share Index companies still offer 3.3 percentage points more than 10-year debt. With the BOE's increased stimulus crushing government-bond yields, U.K. equities are becoming even more irresistible. Companies in the FTSE All-Share Index return 3.8 percent in dividends, near an all-time high relative to 10-year gilts. BNY Mellon Chief Currency Strategist Simon Derrick discusses with Bloomberg's Manus Cranny on "Countdown."