Funds See ‘Violent’ Drop in UK Bonds as Opportunity to Buy Cheap

A dramatic selloff in UK bonds since the outbreak of conflict in the Middle East has created a buying opportunity for a small group of investors willing to tolerate elevated volatility. The dislocation suggests material moves in gilt yields and liquidity; any allocations should be sized for continued risk-off episodes and potential sharp yield reversals.

Analysis

A dramatic selloff in UK bonds since the outbreak of conflict in the Middle East has created a buying opportunity for a small group of investors willing to tolerate elevated volatility. The dislocation suggests material moves in gilt yields and liquidity; any allocations should be sized for continued risk-off episodes and potential sharp yield reversals.