Market analysis: The long-term bond yields in the UK may fall in the near future.

Capital Market Strategists from the Royal Bank of Canada said in a report that following last week's spike in the 30-year UK government bond yields to a 27-year high, the long-term bond yields in the UK may decrease in the coming months. The bank stated that the UK Debt Management Office is increasing the proportion of short-term bond supply from October to December, which could support the demand for long-term bonds and alleviate the pressure on long bond yields. It is expected that the Bank of England will also reduce the sale of government bonds as part of its quantitative tightening plan. The strategists believe that this should support the UK long-term government bonds.