What accounts for the fail in UK ten-year government bond yields?

Guimarães, Rodrigo
August 2012
Bank of England Quarterly Bulletin;2012 3rd Quarter, Vol. 52 Issue 3, p213
Academic Journal
Financial market measures of future interest rates and inflation rates can provide useful and timely information for policymakers. Recent advances in yield curve modelling have improved the Bank's capacity to extract policy-relevant information from these market measures. Such models suggest that the fall in the yield on UK ten-year nominal government bonds since the onset of the financial crisis largely reflects lower expectations of real interest rates at shorter horizons, consistent with an expectation that policy rates will remain low for some time. The model estimates also indicate that inflation expectations have been relatively stable, and suggest that there are no signs that they have become less well anchored.


Related Articles

  • Inflation Uncertainty and the Recent Low Level of the Long Bond Rate. Mehra, Yash P. // Economic Quarterly (10697225);Summer2006, Vol. 92 Issue 3, p225 

    The article discusses the inflation uncertainty and the low levels of long-term bond interest rates from the first quarter of 1994 to the third quarter of 2004. The uncertainty about short-term inflation forecasts implies an increase in uncertainty about long-term inflation. The positive...

  • FIXED INCOME. Sibillin, Anthony // BRW;1/14/2010, Vol. 32 Issue 1, p24 

    The article focuses on how the returns of Australian bond funds depend on the interest rates. It states that investing in individual funds offers double return as it doubles the risk of the investment. It also mentions that retail investors can choose on how to invest, while direct buyers are...

  • What We're Hearing.  // Morningstar Fund Family Reports: Vanguard;Aug2007, Issue 51, p11 

    The article presents an answer to a question about the impact of rising interest rates on the return of a Treasury Inflation-Protected Securities (TIPS) mutual fund. The TIPS are bonds whose principal values are indexed to inflation. It is stated that increasing rates can affect a TIPS bond or...

  • Inflation-fighting bonds have little to fight. Wollenberg, Yvonne Chilik // Medical Economics;12/19/2003, Vol. 80 Issue 24, p11 

    People shouldn't count on making much money with Series I savings bonds now that low inflation has caused the interest rate to plunge to only 2.19 percent. The rate is adjusted twice a year, based on the Consumer Price Index, and won't change again until next May. EE bonds might look like a...

  • Investment TIP Worth Considering. Blau, Joel M.; Paprocki, Ronald J. // AUANews;Dec2008, Vol. 13 Issue 12, p22 

    The article advises physicians to consider investing on a government bond called Treasury Inflation-Protected Securities (TIPS). Unlike other government bonds, TIPS prices are not influenced by real interest rates and inflation changes thus investors can be offered of a positive real rate of...

  • A FRONTEIRA DE ESCOLHA DA COMPOSIÇÃO DA DÍVIDA MOBILIÁRIA SOB A HIPÓTESE DO PECADO ORIGINAL. Turolla, Frederico Araujo; Fernandes, Orlando Assunção; Monteiro, Erika Roberta // Análise;Jul-Dec2010, Vol. 21 Issue 2, p175 

    This paper takes the so-called "original sin" hypothesis as constraint to improvements in the composition of the federal securities debt as it proposes the existence of a frontier of choice between term and the proportion of fixed-rate securities in the debt. The quality of the resulting choice...

  • TBMA: Fed Funds May Hit 3% Next June. Newman, Emily // Bond Buyer;6/30/2004, Vol. 348 Issue 31916, p2 

    Reports that the Federal Open Market will raise its fed funds rate and continue to raise the target rate by December according to a survey of the Bond Market Association's economic advisory committee. Indication that Fed is satisfied that the pace of economic growth is sustainable; Outlook for...

  • Investors remain cool to increase in Treasury yields. PIELICHATA, PAULINA // Pensions & Investments;11/28/2016, Vol. 44 Issue 24, p0006 

    The article reports that the financial investors in the U.S. Treasuries yield remain optimistic regarding the boost of bond allocations following the 2016 U.S. presidential election. It mentions that the President-elect Donald J. Trump is expecting the rise of the interest rates and inflation in...

  • US investor may hand a lifeline to UK pensions. Perry, Michelle // Finance Week (Centaur Communications);1/25/2006, p10 

    The article discusses the impact of a rise in inflation expectations and a fall in bond yields on British pensions. Liability growth has been greater than asset growth, despite strong equity markets. The value of assets in pension funds has increased in line with the recent increase in markets...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics