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Please see below an article from Legal & General Investment Managers Asset Allocation team, which was published late yesterday afternoon and details a variety of views on Bond Yield movements and their potential impact on markets:

As you can see from the above article, there are various factors to be considered when trying to assess how Bond Yield movements will impact on markets. I believe LGIM are saying that short-term bond yield increases may be unwanted, and there are fiscal tools (i.e. Quantative Easing) to help dampen demand and keep rates lower. Also, any potential equity sell-off which has stemmed from rate increases could be seen as a buying opportunity.

Other fund manager views could differ from the above.

I think the key message regardless, is to keep calm and remain invested for the long-term, markets will recover from short-term dips.

Please continue to check our Blog content for advice and planning issues and the latest investment, markets and economic updates from leading investment houses.

Please keep safe and healthy.

Carl Mitchell – Dip PFS

IFA and Paraplanner

02/03/2021