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TPP comments on Gilt Market

As the National Institute of Economic and Social Research (NIESR) reports that the ten-year UK

government bond (gilt) yield now stands at a similar rate as observed a year ago following the

aftermath of the ‘mini-budget’, we ask Lane Clark, Co-Founder, The Portfolio Platform (TPP)

( why despite its volatility the gilt market is still proving attractive to investors.

“In September 2022, Liz Truss’s mini budget sent shockwaves through the gilt market, thrusting it into the spotlight of public and investor attention.  The gilt market tanked that day because Kwasi Kwarteng announced that the government would borrow £72 billion to fund tax cuts.  You don't need to be a gilt trader to know what to do with every government bond you own – sell.”

“However, the subsequent rise in bond yields to 4.54% for the ten-year bond presents an attractive opportunity for investors seeking a solid return on a AAA bond.  Gilts are cheap, but they can always get cheaper, and you don't have to find the absolute bottom to make a good return.”

“The current fiscal year marks the largest net issuance of gilts in the UK's history, reflecting an increase of 29% compared to the previous year.  Speculation has arisen regarding the impact of this increased supply on gilt yields.  Economic theory suggests that increasing the supply of bonds while holding demand constant should exert downward pressure on prices and drive yields higher.  Nevertheless, experts believe that gilt prices may have hit a bottom, making them an attractive investment option.”

“Amidst these market dynamics, TPP’s unique trading strategies have proven successful, even in volatile markets.  By capitalizing on market movements and carefully timed trades, TPP has consistently demonstrated its ability to beat benchmarks and generate profits for its clients.

“We are committed to revolutionizing the wealth industry.  TPP has been built for frustrated investors globally.  The platform showcases elite traders with extensive track records of outperforming their market benchmarks.  These strategies are available to investors globally via TPP’s innovative technology.”

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