In our yield update we explore the background to the current rates environment, the drivers of recent movements and situate these in the context of their key relevance to UK pension schemes.
Longer dated real yields took a round trip over Q1 2018, ending the quarter broadly in line with where they finished 2017. Investor sentiment started the year optimistically but moved to a more pessimistic stance by March, as geopolitical tensions and fears of an escalating US-China trade war mounted. This caused rates to fall back from the higher levels reached earlier in Q1. We examine some of the implications for pension schemes at 31 March 2018 in the following update.
Read the full yield update for more detail.