Buzz: Industry not confident gilt yields will rise

clock • 1 min read

Buzz respondents are far from optimistic that the long hoped for rally in gilt yields will happen this year. Just one in fifty contributors believes yields will rise significantly in 2013 while the majority think they will remain steady.

Three out of ten respondents think yields will increase slightly while one in six can see them dropping even further. One commentator blamed the "nefarious campaign against UK equities" (see here) for killing off any chance of an increase in yields.

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Another respondent said: "Gilt yields up = more de-risking = more demand for gilts = gilt yields down. I can't see anything else happening for 15 years given that the government is trying to cut borrowing in the medium term."

Several respondents said the bubble had to burst but couldn't necessarily see it happening any time soon.

"Surely they can't go down, and to go up someone needs to be brave and buck the trend - I can't see that happening," said one contributor.

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