“If you look at the 10-year yield, it’s risen across all G7 members, and this is reflecting the nature of these twin shocks,” said Ben Caswell, Senior Economist at the National Institute of Economic and Social Research (NIESR), a UK think tank.
Speaking at the inaugural Investing in the Real Economy and Societal Change Forum (IRESC) in London on Wednesday, Caswell said an energy supply shock and an AI-driven demand shock are lifting yields in ways that are unlikely to reverse quickly.
For insurer investment teams, whose balance sheets are sensitive to gilt yields and inflation, the message is that today’s rate environment may be a structural feature rather than a passing episode.
Sign in to read the full article or Register for FREE and get access
SIGN IN
FREE PREMIUM ACCOUNT
Don't have an account yet?
To access
the premium content FOR FREE on Insurance Investor, you must first sign in to your account.
Not subscribed? Sign up today for free
Why subscribe? Click here for more details