Ten year UK gilts at record low yields

Discussion of the Bond portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
chrish
Associate Member
Associate Member
Posts: 38
Joined: Fri Jan 06, 2012 2:01 am

Ten year UK gilts at record low yields

Post by chrish »

UK 10 year gilt yields have reached a 300 year low this week. I'm assuming this is due to their safe haven status due to the ongoing problems in the eurozone.

However, the price of the longer dated UK gilts in my PP is still down 3 or 4% on the price I paid when I started my PP in January.

Does anyone have any thoughts as to why this should be? I thought that, in general, longer dated bonds would be more volatile, and would be more likely to shoot up in response to stock market falls, but that doesn't seem to be happening at the moment.
Post Reply