The UK economy has become grossly imbalanced, huge fiscal deficit, trade balance deficit, financial account deficit, an overall burden to the global economy and investors that are not going to lend funds anymore to the UK
unless Yields do provide much more remuneration for the risk of UK GILTS. The UK Sovereign debt does not fully discount an inbuilt fragmentation risk, such as Scotland's full devolution.
Thereby, large Institutional funds need to be fully aware of the higher and unforeseen risk in UK GILTS.
The 5Y GILTS chart on a monthly timeframe would see yields testing 6.0%
unless Yields do provide much more remuneration for the risk of UK GILTS. The UK Sovereign debt does not fully discount an inbuilt fragmentation risk, such as Scotland's full devolution.
Thereby, large Institutional funds need to be fully aware of the higher and unforeseen risk in UK GILTS.
The 5Y GILTS chart on a monthly timeframe would see yields testing 6.0%