For almost a year now this commentator has been a “reluctant Bull” in Fixed interest.

During this time 10yr UK Gilt yields (see Chart below)  have fallen from circa 2.9% to 1.90% In Capital terms this equates to a rise in Price of  circa 15 points!

The deflationary back drop recently exacerbated by poor Europe data could push yields even lower. The benefit of being “Systematic” allows me to just “follow the numbers”  until told otherwise. The initial target is 1.76% but  1.46 % has also appeared on the radar? This raises the possibility of a return to the “Financial Crisis” low yield of 1.44% made in  April 2013. Update to follow.

 

The most important chart ever? New low yields

The most important chart ever? New low yields

Gerry O'Neill
Gerry O'Neill
Gerry has extensive experience in Portfolio management and trading roles. Passionate about systematic trading and evidenced based investment strategies he cuts through the "inefficient subjectivity" upheld by many market Commentators and provides you with "evidence" for you to consider. Use the Sinergi dashboards and powerful "associative search" functionality to get to the information that is important to you and your business.