In the wake of the UK’s vote for Brexit on 23rd June, long-term government bond yields have fallen further there than in other developed countries. (See Chart below.) Indeed, the 10-year Gilt yield recently declined to a record low of about 0.75%. Despite warnings that such a vote would raise the UK government’s cost of borrowing – the UK has since lost its AAA rating from two more of the major rating agencies – yields have tumbled amid increased demand for safe-havens and expectations of even looser monetary policy.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services