The UK government bond market is open! And there is reassuring news for borrowers, and our political leaders.
UK bond prices are strengthening, a little, which is pushing down the yield (or rate of return) on these gilts.
10-year UK bond yields have dropped by over 4 basis points (0.04 of a percentage point) to 5.195%, away from the 18-year high set yesterday.
30-year bond yields are down 4bps too, to 5.831%.
Update: AJ Bell investment director Russ Mould reports there is “a measure of calm in government bond markets” today, as the oil price drops.
With Brent crude down about 0.5% at $95.20 a barrel, some of the fears of an inflationary shock that would drive interest rates higher may be easing.
