The UK government bond market is open, and there is reassuring news for borrowers and political leaders. Bond prices are strengthening slightly, pushing down the yield, or rate of return, on these gilts. The 10-year UK bond yield has dropped by more than 4 basis points (0.04 of a percentage point) to 5.195%, moving away from the 18-year high set yesterday. The 30-year bond yield is also down 4 basis points, to 5.831%.
AJ Bell investment director Russ Mould reports "a measure of calm in government bond markets" today, as the oil price drops. Brent crude is down about 0.5% at $95.20 a barrel, and some fears of an inflationary shock that would drive interest rates higher may be easing.
