Central Banks Eye UK Gilts as 10-Year Yields Jump 60 Basis Points
Updated
Updated · Reuters · May 28
Central Banks Eye UK Gilts as 10-Year Yields Jump 60 Basis Points
2 articles · Updated · Reuters · May 28
Official institutions including central banks are showing meaningful interest in UK gilts, with some considering the market for the first time, NatWest Markets CEO Jonathan Peberdy said.
Higher yields are driving that interest: UK 10-year gilt yields have risen 60 basis points since the Iran war began in late February, and investors now see sterling rates as good value.
Peberdy said some central banks with relatively small sterling portfolios are weighing bigger allocations, alongside other official investors such as sovereign wealth funds and government departments.
The renewed attention comes as political uncertainty around Prime Minister Keir Starmer and possible leadership turmoil has also pressured gilts, while sterling still makes up only about 4.4% of global reserves.
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