Gilt yields rise at their fastest rate since the 1990s as central banks scramble to combat surging inflation

Gilt yields rise at their fastest rate since the 1990s as central banks scramble to combat surging inflation

08 Jul 2022

Monetary policy response to rising inflation by major central banks globally triggered a series of sharp rises in government bond yields over the quarter. Risk assets continued to underperform with the looming threat of a global economic downturn.
 
Despite poor equity and credit market performance, rising yield have driven improved funding for many pension schemes. However, the experience of different schemes has been very wide depending on the exposure to growth assets and hedging levels. Schemes need to assess where they are an take action.
 
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