Central banks and official institutions eye UK gilts
Natwest Markets CEO Jonathan Peberdy says central banks are eyeing UK gilts as yields rise. Investors see value in sterling assets despite political uncertainty.
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Natwest Group PLC reported that central banks and sovereign wealth funds are increasing interest in the United Kingdom government bond market following a sharp rise in yields. The 10-year gilt yields have climbed 60 basis points since the Iran war broke out at the end of February. This shift suggests a potential expansion of sterling's 4.4% share of global currency reserves as investors seek higher returns.
