Strong UK Government Bond Market

July 4, 2010 by admin
Filed under: Economic Outlook 

The UK government bond market has outperformed other bond markets, mainly because the country has an independent currency.
The UK market has also been boosted ever since the emergency Budget, with gilt yields dropping further as the government has convinced the investors in the field that the risk of the UK losing its triple A rating has fallen.
Via pledging to tighten fiscal policy by £113bn over the next five years, the UK government gained approval from the ratings agencies that it was not about to risk its credit status and was determined to cut the budget deficit.
However, the big question is whether gilts can keep on shining?

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