- Sell-off presents opportunities for new bond investors, but existing holders take a hit
- Annuities could make a resurgence
- Cash savings may benefit, but only if yields remain elevated
Turbulence in the bond market has seen gilt yields spike, as inflationary pressures spook investors. The 10-year gilt yield has risen to highs last seen during 2008’s financial crash, while the yield on the 30-year treasury has reached the highest level since 1998.
As of 14 January, the 10-year gilt yield was 4.89 per cent and the 30-year gilt yield was 5.44 per cent.