Skip to main content

Global forces drag down gilt yields

We doubt that the downward pressure on UK gilt yields from the weaker global economy will fade over the next year. In the near term, the 10-year gilt yield may therefore fall below its current two-year low of 1.0%. And if there were a no deal Brexit on 12th April, then domestic factors would exacerbate the influence from overseas and gilt yields would fall sharply. But if a deal were agreed before 12th April or if Brexit were delayed for a long time, the prospect of interest rate hikes from the Bank of England would mean that government bond yields in the UK rise even as yields overseas fall.

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


Get access