Long gilts in a short squeeze?

In this month’s Market commentary, we are looking at the recent bounce back of gilt yields, as well as reasons why we should not expect as dramatic a rise in the UK compared to the US. 

Following a bumpy December gilt yields rose in January as liquidity returned to the market and data remained positive.  Political risks aside the economic fundamentals seem to point to slightly higher yields over the medium term

But are long gilts in a short squeeze? Gilt prices have risen dramatically in recent years leading to a number of commentators referring to current gilt prices as a bubble; we believe that the reality is rather more interesting, with important implications for UK pension funds.

To find out more on this please click on the link above to read the full article.