15-Years Gilt Yields Chart


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31 July 2012 last updated

Gilt Yields - July 2012 review

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 24 months

Latest yield:

1 month change:

3 month change:

6 month change:

1 year change:

2.04%

0.17%

0.63%

0.39%

1.52%

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

Fear over Spain's debt and Quantitative Easing push gilt yields to lowest levels

Find out more: annuity rates for July

The 15-year gilt yields reached a new low during the month of July of 2.03% before settling 25 basis points lower to end at 2.04%.

Although investors were initially optimistic with the Eurozone bailout package for Spain's banks, fear grew over Spain's sovereign debt and their 10-year bond yields increased to 7.66%, well above the 7% level that would trigger a bailout for the country as in the case of Portugal, Greece and Ireland.

In addition the Bank of England announced another £50 billion of Quantitative easing (QE) bring the total so far injected into the economy to £325 billion. This injection was due to the slowdown in the economy and reducing inflation nearing the Bank of England's target of 2%. The combined effect of both the Eurozone debt crisis and QE was to force the yields on gilts lower and so far this has not been fully reflected in annuity rates.

For July the yields range for the month was from 2.29% to 2.03% or 25 basis points which is similar to 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 - July 2012

Mon 2nd

Tues 3rd

Wed 4th

Thurs 5th

Fri 6th

2.24%
		0.05

2.31%
		0.07

2.28%
		0.03

2.23%
		0.05

2.18%
		0.05

Mon 9th

Tues 10th

Wed 11th

Thurs 12th

Fri 13th

2.16%
		0.02

2.16%

2.13%
		0.03

2.10%
		0.03

2.10%

Mon 16th

Tues 17th

Wed 18th

Thus 19th

Fri 20th

2.06%
		0.04

2.06%

2.03%
		0.03

2.09%
		0.06

2.05%
		0.04

Mon 23rd

Tues 24th

Wed 25th

Thurs 26th

Fri 27th

2.05%

2.04%
		0.01

2.04%

2.06%
		0.02

2.11%
		0.05

Mon 30th

Tues 31st

2.12%
		0.01

2.04%
		0.08

Fig 2: Daily 15-year gilt yields and changes

Annuity rates have reduced across the board in July with standard, smoker and impaired annuities reducing. So far standard annuity rates are lower by 1.31% and smoker rates by 1.73%. With yields down 25 basis points it would suggest that annuities will reduce by 2.5% so there is still scope for further reduction. See Annuity Rates 2012 for the latest updates.