Capital Economics: UK government bonds are vulnerable to shocks as price-sensitive buyers dominate the market.

Sina Finance News on March 30th, Joe Maher from Capital Economics stated in a report that due to the increasing proportion of price-sensitive investors in the UK government bond market, UK government bonds are easily underperforming. "The ownership structure of UK government bonds has shifted from pension funds and the Bank of England to buyers who are more sensitive to prices recently," Maher said, adding that this shift has intensified the volatility in the UK government bond market and raised concerns about further increases in UK government bond yields. Data from Tradeweb shows that the yield on 10-year UK government bonds fell by 6.5 basis points compared to the previous trading day, to the latest report of 4.922%. However, since the outbreak of the Middle East war four weeks ago, the yield has risen by about 68 basis points.