Shares & the stock market

What could help to calm the bond market?

UK gilt yields have risen sharply, but could higher yields eventually help calm the UK bond market?

In this video, Russ Mould examines why sentiment towards UK government bonds may be excessively bearish and what could persuade investors to reconsider gilts.

The discussion looks at the pressures facing the UK bond market, including inflation, government borrowing and elevated long-term gilt yields, while considering what could eventually reassure the so-called “bond vigilantes”.

In this video:

  • Why UK gilt yields have risen
  • Whether today's yields represent a return to more normal levels
  • How UK borrowing costs compare with the US, Japan and France
  • What could calm the bond market, from fiscal policy to central bank intervention
  • How valuation could eventually influence demand for government bonds
  • Why higher gilt yields could have implications for equity investors