Momentum says UK 20-year real gilt yield holds near two-decade high around 2.4%
TLT•Momentum Global Investment Management flagged the UK 20-year real gilt yield holding near 2.4%, compared with about -2.5% previously.
1. Real yields remain elevated
Momentum Global Investment Management said the UK 20-year real gilt yield had risen to roughly 2.4% from about -2.5% and remained near post-2022 highs despite shifting Bank of England rate expectations. It said persistent elevation partly reflects higher term premia tied to gilt supply and demand, alongside expectations for future real rates.
2. Potential effects
The brief said higher real yields improve prospective bond returns and tighten equity valuation support through higher discount rates, with growth stocks most exposed. Pension schemes could see lower present values for long-dated liabilities, depending on their asset-liability structure.



