UK gilt yields to fall quickly below 1% – Citi

By: | Updated: June 24, 2016 12:42 PM

The yields on 10-year British government debt will quickly fall to a new record low below 1 percent after voters in the country decided to leave the European Union, analysts at Citi said in a note on Friday.

citi The 10-year gilt yield closed at 1.376 percent on Thursday when expectations were high in financial markets that the referendum would end in vote to stay in the EU. Trading was due to resume at 0700 GMT on Friday. (Reuters)

The yields on 10-year British government debt will quickly fall to a new record low below 1 percent after voters in the country decided to leave the European Union, analysts at Citi said in a note on Friday.

Also Read:Citi says close ‘In’ vote in EU referendum could still undermine EU and UK stability

The 10-year gilt yield closed at 1.376 percent on Thursday when expectations were high in financial markets that the referendum would end in vote to stay in the EU. Trading was due to resume at 0700 GMT on Friday.
The analysts also said investors were likely to price in one or two interest rate cuts by the Bank of England which has said it might try to offset the expected shock to Britain’s economy from a so-called Brexit vote.

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