15-Years Gilt Yields Chart


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Gilt yields end month with an time low as Eurozone crisis develops

Gilt Yields Table:
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2011	-	-	-	-	-	-	-	-	Sep	Oct	Nov	Dec
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15-Year Gilt Yields over 1 year

Latest yield:

1 month change:

3 month change:

6 month change:

1 year change:

2.43%

0.03%

0.47%

1.13%

1.78%

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

January gilt yields down 3 basis points to 2.43%

Find out more: latest gilt yields

The Eurozone continues to concern the markets with the debt crisis still unresolved and developing. The International Monetary Fund (IMF) is attempting to create a $1tn fund to protect against sovereign debt defaults although there is uncertainty over Greece which is still negotiating with their creditors over their debt.

For January the range of yields for the month starting at 2.46% to 2.63% or a difference of 17 basis points. This month was not volatile compared to previous months as equity markets have shown some potential for increases having increased by 110 points to end at 5,682 based on better than expected economic data, off-setting uncertainty from the Eurozone. As a result gilt yields were down slightly by 3 basis points to end at an all time record for the end of a month of 2.43%. 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 - January 2012

Mon 2nd

Tues 3rd

Wed 4th

Thurs 5th

Fri 6th

2.51%
		0.05

2.52%
		0.01

2.51%
		0.01

2.48%
		0.03

Mon 9th

Tues 10th

Wed 11th

Thurs 12th

Fri 13th

2.46%
		0.02

2.52%
		0.06

2.46%
		0.06

2.48%
		0.02

2.42%
		0.06

Mon 16th

Tues 17th

Wed 18th

Thus 19th

Fri 20th

2.42%

2.41%
		0.01

2.40%
		0.01

2.50%
		0.10

2.56%
		0.06

Mon 23rd

Tues 24th

Wed 25th

Thurs 26th

Fri 27th

2.63%
		0.06

2.63%

2.61%
		0.02

2.55%
		0.06

2.53%
		0.02

Mon 30th

Tues 31st

2.46%
		0.07

2.43%
		0.03

Fig 2: Daily 15-year gilt yields and changes

Fig 2 above shows gilt yields started January 2012 at 2.46% which is a reduction of 24 basis point from the start of December. This should translate to roughly a 2.4% reduction in annuity rates and providers have not followed the gilt yields by the start of January suggesting decreases in annuity rates can be expected. However, yields did increase to 2.63% towards the end of the month although this did not prevent annuities reducing.

Pension annuity rates are expected to fall with The Bank of England plan for £75 billion of Quantitative Easing to start in February 2012 and this is likely to force gilt yields lower and annuity rates will also reduce towards the end of February and into March 2012.