15-Years Gilt Yields Chart


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Gilt yields increase as investor confidence returns to equity markets

Gilt Yields Table:
2013	Jan	Feb	-	-	-	-	-	-	-	-	-	-
2012	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2011	-	-	-	-	-	-	-	-	Sep	Oct	Nov	Dec
Click on the above links for previous month gilt yield reviews

15-Year Gilt Yields over 1 year

Latest yield:

1 month change:

3 month change:

6 month change:

1 year change:

2.59%

0.16%

0.11%

0.75%

1.56%

Fig 1: 15-year gilt yields chart showing rates to February 2012

February yields improve 16 basis points to 2.59%

Find out more: latest gilt yields

This month has seen strong gains in equities with the FTSE-100 index reaching a high of 5,945 as well as increasing 15-year gilt yields rising to 2.77% before falling back to 2.59%. The reason for the increase is likely due to investors moving funds from UK government bonds and gilts to equities or even the higher yielding European sovereign debt, now that Greece has finally agreed their rescue plan. The Eurozone problem has not gone away so there may be further volatility in the future that will affect gilt yields.

For February yield volatility was a range of 2.43% to 2.77% or a change of 34 basis points. 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 - February 2012

Wed 1st

Thurs 2nd

Fri 3rd

2.50%
		0.07

2.57%
		0.07

2.66%
		0.09

Mon 6th

Tues 7th

Wed 8th

Thurs 9th

Fri 10th

2.70%
		0.04

2.68%
		0.02

2.76%
		0.08

2.76%

2.67%
		0.09

Mon 13th

Tues 14th

Wed 15th

Thus 16th

Fri 17th

2.66%
		0.01

2.62%
		0.04

2.60%
		0.02

2.66%
		0.06

2.72%
		0.06

Mon 20th

Tues 21st

Wed 22nd

Thurs 23rd

Fri 24th

2.77%
		0.05

2.74%
		0.03

2.67%
		0.07

2.63%
		0.04

2.60%
		0.03

Mon 27th

Tues 28th

Wed 29th

2.54%
		0.06

2.53%
		0.01

2.59%
		0.06

Fig 2: Daily 15-year gilt yields and changes

Fig 2 above shows the 15-year gilt yields started February 2012 at 2.43% which is a reduction of 3 basis point during January. By 3rd February they had increased 23 basis points and this almost offsets the 27 basis points decrease in gilt yields over the past two months. See Annuity Rates 2012 for the latest updates.

As a rough guide a 16 basis point change in the gilt yields would result in a 1.6% change in annuity rates for the month. In the short term standard annuity rates have been relatively high and we would expect these to decrease by 2.4% if gilt yields do not improve.