Hung parliament could see gilts lose their shine

UK government bond yields are likely to spike in the event of a hung parliament in the country’s general election on May 6, market analysts have warned. “The expectation is that a hung parliament would be negative for gilts as it would be difficult to get agreement on how – and how quickly – the UK should deal with its deficit,” says Gary Jenkins, head of fixed income research at Evolution Securities. “Thus you could well see increased volatility and rising

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