Fixed Income  

How will gilt markets react if UK departs EU?

This article is part of
EU Referendum – May 2016

“But from the start of this year when we saw the lead for the Remain [vote] start to dwindle, we saw those spreads widen from minus five in February down to levels of about plus 20.”

In a UK economics update, Capital Economics assistant economist Oliver Jones observes: “So far there is little sign that worries the UK could vote to leave the EU are having much effect on gilt yields.

“Indeed, yields have fallen in recent months, moving almost in [tandem] with other developed-market yields, indicating that the factors driving yields down have primarily been global, rather than UK-specific.”

Ellie Duncan is deputy features editor at Investment Adviser