For now, Gilt yields are stretched

British 10 year government bond yields are seldom this distance above its 200 week moving average while simultaneously registering a weekly overbought reading.

Forgetting Bank of England policy rate setting, I can see these 10’s back down around 2.40% over the coming 9-15 months.

Demand destruction commensurate with decline in GDP will aide this thesis.

June 21, 2023

by Rob Zdravevski

rob@karriasset.com.au