Why QT may influence gilt yields for years to come

A further slowdown of Quantitative Tightening (QT) may relieve some of the recent upward pressure on gilt yields, but only temporarily. And although QT is making the public finances less sensitive to future rises in interest rates and bond yields, this is coming at the cost of structurally higher term premia and gilt yields. What’s more, these effects may last longer than some assume. 

We’ll be discussing the state of the UK economy, our latest analysis on the Autumn Budget and what to expect from the Bank of England’s September meeting in a 20-minute online briefing at 2pm BST on Wednesday 9th September. (Register here.)