UK Markets Chart Pack Markets fail to buy into hung parliament “nightmare” (Apr 10) Much has been made of the implications for the markets of a hung parliament outcome after the general election on May 6th. But we doubt that the absence of a decisive victory for any of the main... 21st April 2010 · 1 min read
UK Markets Chart Pack Central banks cut back on liquidity provisions (Mar 10) Over the last month, central banks have continued to withdraw some of the unconventional liquidity provisions offered to the money markets. The US Federal Reserve raised its discount rate from 0.50%... 11th March 2010 · 1 min read
UK Markets Chart Pack Weak recovery pushes interest rates lower (Feb 10) Concerns about the fragility of the domestic recovery have recently outweighed those regarding the sustainability of the UK’s public finances and the Bank of England’s decision to pause its programme... 12th February 2010 · 1 min read
UK Markets Chart Pack Markets misjudge the interest rate outlook (Jan 10) Markets continue to expect official interest rates in the UK to be raised from around the middle of 2010. No doubt the recent pick-up in inflation – as well as speculation that the Bank’s programme of... 27th January 2010 · 1 min read
UK Markets Chart Pack Fiscal concerns trouble bond markets (Dec 09) The Chancellor’s projections for borrowing and debt in the Pre-Budget Report failed to reassure markets that the public finances are back on a path to fiscal sustainability. In response, gilt yields... 16th December 2009 · 1 min read
UK Markets Chart Pack Bounce in gilt yields may not last (Nov 09) Gilt yields have risen over the last month, with 10-year yields close to half a percentage point higher than a month ago. The Monetary Policy Committee’s decision at its meeting in November to extend... 10th November 2009 · 1 min read
UK Markets Chart Pack Real yields take a dive (Oct 09) The yield on inflation-indexed bonds may increase at the outset of a recovery if markets expect the authorities to raise interest rates in real – as well as nominal – terms. However, real yields have... 12th October 2009 · 1 min read
UK Markets Chart Pack Improved liquidity conditions underpin credit markets (Sep 09) Corporate bond spreads have ground even tighter over the past month. Aside from the improvement in the incoming economic data, which has reduced required compensation for the risk of default, the... 17th September 2009 · 1 min read
UK Markets Chart Pack Corporate bond spreads continue to tighten (Aug 09) The spread of A-rated, 7-10 year UK corporate bonds over gilts over an equivalent maturity has plummeted to around 4% from more than 10% in the dark days of spring. Admittedly, corporate bonds spreads... 10th August 2009 · 1 min read
UK Markets Chart Pack Markets shrug off delay to expansion of QE (Jul 09) The gilt market reacted with some concern to the MPC’s decision this month not to announce an immediate increase in the funds it plans to allocate to quantitative easing. However, we think that... 15th July 2009 · 1 min read
UK Markets Chart Pack Risk appetite continues to grow (Jun 09) Growth in risk appetite is continuing to have a beneficial impact on credit markets. Corporate bond spreads have tightened further over the past month. The global default rate for speculative grade... 12th June 2009 · 1 min read
UK Markets Chart Pack Corporate bond spreads grind tighter (May 09) According to the Investment Management Association, the credit crunch has resulted in the sterling corporate bond market becoming characterised by wide spreads, a lack – or even absence of – market... 15th May 2009 · 1 min read
UK Markets Chart Pack Outlook still favourable for gilts (Apr 09) We continue to expect 10 year gilt yields to drop to around 2.5% and to remain at those sorts of levels for a prolonged period. While breakeven inflation rates have crept a little higher in response... 15th April 2009 · 1 min read
UK Markets Chart Pack Quantitative easing makes its mark (Mar 09) Our view that the combination of very low interest rates, deflationary pressures and large-scale official purchases of bonds would push gilt yields sharply lower has been strongly borne out over... 24th March 2009 · 1 min read
UK Markets Chart Pack Gilts poised to rally further on adoption of QE (Feb 09) The bond market sell-off since the start of the year has stemmed from hope that massive monetary and fiscal stimulus will trigger economic recovery and prevent deflation. Concern about the market’s... 17th February 2009 · 1 min read
UK Markets Chart Pack Spike in bond yields should not last (Jan 09) Over the past month, global bond yields have risen somewhat in response to growing concerns about the outlook for public finances and sovereign credit risk. Nonetheless, we continue to think that the... 21st January 2009 · 1 min read
