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31 October 2012 last updated
Gilt Yields - October 2012 review
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15-Year Gilt Yields - October 2012
Latest yield:   1 month change:   3 month change:   6 month change:   1 year change:  
2.31%  
gilt yields up   0.13%
 
gilt yields up   0.27%
 
gilt yields down   0.36%
 
gilt yields down   0.59%
 
15-year gilt yields 2012
Fig 1: 15-year gilt yields chart showing rates to October 2012

 

Gilt yields increase as Greece announce it is close to securing the next bailout deal

Find out more:
latest gilt yields
October analysis of annuities

The 15-year gilt yields increased by 13 basis points during October 2.31% after being as high as 2.38% earlier in the month after Greece announced that it was close to agreeing the next 31 billion euros of the bailout deal and Spain avoided a downgrade of it's credit rating to junk status by credit rating agency moody's.

Later in the month estimates of Greek debt increasing to 189% of Gross Domestic Product (GDP) which was higher than expected and Spain's economy shrank by 0.3% during the third quarter, the fifth quarterly contraction in a row. As a result of the general bad news investors have been moving funds to safe havens such as UK government bonds and gilts forcing prices up and yields down.

For October the yields range for the month was from 2.14% to 2.38% or 24 basis points which is more volatile than the previous month. Fig 2 below shows the daily 15-year gilt yields and the increase or decrease from the previous day's close:



15-Year Gilt Yields - October 2012
Mon 1st Tues 2nd Wed 3rd Thurs 4th Fri 5th
2.19%
gilt yields up   0.03
2.17%
gilt yields down   0.02
2.14%
gilt yields down   0.03
2.16%
gilt yields up   0.02
2.23%
gilt yields up   0.07
Mon 8th Tues 9th Wed 10th Thurs 11th Fri 12th
2.19%
gilt yields down   0.04
2.19%
gilt yields no change
2.23%
gilt yields up   0.04
2.24%
gilt yields up   0.01
2.18%
gilt yields down   0.06
Mon 15th Tues 16th Wed 17th Thus 18th Fri 19th
2.20%
gilt yields up   0.02
2.28%
gilt yields up   0.08
2.38%
gilt yields up   0.10
2.37%
gilt yields down   0.01
2.36%
gilt yields down   0.01
Mon 22nd Tues 23th Wed 24th Thurs 25th Fri 26th
2.38%
gilt yields up   0.02
2.30%
gilt yields down   0.08
2.32%
gilt yields up   0.02
2.38%
gilt yields up   0.06
2.33%
gilt yields down   0.05
Mon 29th Tues 30th Wed 31st    
2.25%
gilt yields down   0.08
2.28%
gilt yields up   0.03
2.31%
gilt yields up   0.03
   
  Fig 2: Daily 15-year gilt yields and changes


Even though gilt yields have increase, annuity rates have reduced with standard, smoker and impaired annuities lower by up to 6.5%. Overall standard annuity rates are lower by 0.90% and smoker rates by 1.77%.

Although the data suggests that annuity rates can increase in October by between 2.20% to 3.07% the new EU Gender Directive is likely to force annuities lower by 21 December 2012. For the latest updates see Annuity Rates Review.


 
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