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2026-05-29 10:35:18
[Surge in yields attracts official attention to UK government bonds] (1) Jonathan Peberdy, CEO of NatWest Markets, said that official institutions, including central banks, have shown strong interest in UK government bonds for the first time due to the sharp rise in yields. (2) Peberdy said at the conference that many investors believe that the current interest rate level is very attractive for investment and are seriously considering entering the UK government bond market, some of whom are venturing in for the first time. He further revealed that these first-time investors include official institutions or central banks with relatively small pound investment positions (as well as sovereign wealth funds and government departments), who are considering increasing the proportion of pound in their portfolios. (3) Since the outbreak of the war with Iran at the end of February, the yield on 10-year UK government bonds has risen by 60 basis points, the largest increase among developed economies. In addition, uncertainty about the future of British Prime Minister Starmer's administration and the possible leadership struggle have also put pressure on the market. Peberdy did not disclose the location of these institutions, but said they are not from Asia. According to IMF data, the pound accounts for about 4.4% of global foreign exchange reserves.
