11 Feb 2015
UK 10 year yields to rise - CS
FXStreet (Guatemala) - Analysts at Goldman Sachs explained the implications of rising bond yields triggering shifts within the UK market.
Key Quotes:
"If global economies recover through 2015 and inflation expectations start to rise, combined with higher rates at the short end of the curve, we would expect a modest rise in bond yields."
"We forecast 10-year yields in the UK to rise to 2.5% over the next 12 months. This ought to benefit more cyclicals sectors over defensive names as investors move out of bond-proxy sectors and into those with more to gain from improvements to growth."
"The relationship between cyclical versus defensives performance and the UK bond yield has been strong in recent years."
Key Quotes:
"If global economies recover through 2015 and inflation expectations start to rise, combined with higher rates at the short end of the curve, we would expect a modest rise in bond yields."
"We forecast 10-year yields in the UK to rise to 2.5% over the next 12 months. This ought to benefit more cyclicals sectors over defensive names as investors move out of bond-proxy sectors and into those with more to gain from improvements to growth."
"The relationship between cyclical versus defensives performance and the UK bond yield has been strong in recent years."