Bank of America: UK pension providers to benefit from surging UK bond yields

On January 10, Jinshi data, Mark Cappleton, a securities analyst at Bank of America, said that the yield on UK government bonds has risen to its highest level since 1998, which will improve the solvency of UK pension providers as it increases the discounting of personal debt. “Overall, this should be quite favorable for pension plans,” Cappleton said. Earlier on Thursday, the 30-year UK government bond yield touched 5.455%, while the 10-year UK government bond yield rose to 4.921%, and then stabilized in afternoon trading. Cappleton said that this dumping is slower than in October 2022, when long-term bond yields rose under the push of the UK’s former Prime Minister Theresa. He added that the market liquidity is much more normal now, and the daily fluctuation is also milder.