UK Bond Investors Favor Short-Term Gilts as Burnham Wins Confidence, but Long Debt Still Lags
Updated
Updated · Bloomberg · Jul 3
UK Bond Investors Favor Short-Term Gilts as Burnham Wins Confidence, but Long Debt Still Lags
2 articles · Updated · Bloomberg · Jul 3
Summary
Jupiter Asset Management, Neuberger Berman and Royal London are buying short-term UK gilts while avoiding longer-dated bonds, despite improving confidence in Andy Burnham’s fiscal stance.
Burnham’s pledges of discipline on borrowing and spending have made investors more constructive on Britain’s debt, with short-dated yields seen as attractive at current levels.
Longer maturities are still being shunned because investors want clearer signals on the next chancellor and the first budget before taking duration risk.
That split suggests markets are rewarding near-term policy credibility but still demanding more certainty before backing the UK’s long-end in size.