Euro-phoria gives gilts a boost
Article Abstract:
UK government securities (gilts) have performed better than equities since May 1996 but they have not performed as well as many bond markets in mainland Europe. Bonds have been boosted by expectations that European monetary union (Emu) will be implemented according to schedule in 1999. The UK is perceived as less likely to take part in Emu so gilts have not been boosted as much. UK inflation has not fallen by as much as inflation elsewhere in Europe. European bonds could be affected by a drop in the value of the US dollar.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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UK gilts: lagging behind
Article Abstract:
UK government securities (gilts) have tended not to perform as well as other European bonds, and this could continue, according to NatWest Markets. Other European bonds have benefited from a view that European monetary union (Emu) is likely to take place, but the UK may not join Emu. UK inflation could also be a problem as consumer spending increases. There is also concern that UK interest rates may be too long for political reasons. Longer-dated gilts have been more affected by the underperformance of gilts.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic: