U.K. Investors Could Favor Government Bonds Over Stocks Due to Higher Yields -- Market Talk

Dow Jones03-25 22:58

1458 GMT - Yields on U.K. government bonds climbed after the Middle East war, which could lead investors to favor the relatively safe assets over riskier U.K. stocks, AJ Bell's Russ Mould says in a note. Rising gilt yields could discourage investors from taking more risk with shares or other riskier assets if safer options offer better returns, he says. "The higher the gilt yield goes, the less inclined, or obliged, investors may feel to pay up for alternative asset classes, such as shares." Ten-year gilt yields climbed to a nearly 18-year high of 5.118% this week before retreating to last trade at 4.843%, Tradeweb data show.(miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

March 25, 2026 10:58 ET (14:58 GMT)

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