...

HSBC cuts year-end 10-year UK gilt yield forecast to 0%

Europe Materials 9 June 2020 15:20 (UTC +04:00)
HSBC cuts year-end 10-year UK gilt yield forecast to 0%

HSBC said on Tuesday that it had lowered its year-end forecast on 10-year British government bond yields to 0%, given a small probability of negative interest rates and a sense that rates will stay low for a long period, Trend reports with reference to Reuters.

Britain’s 10-year gilt yield is trading at around 0.32%.

“We cut our year-end 10-year yield forecast to 0% from 20 bps previously,” HSBC analysts said in a note.

“Our low yield bias captures the greater weight we place on the likelihood that Bank Rate stays low for a prolonged period, as well as the increased possibility of negative rates.”

Tags:
Latest

Latest