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Interest rates on gilts to double over decade

Monday 15th February 2010
Interest rates on government bonds will more than double over the next decade.

An ageing population and a more unstable economy will combine to lift the cost of borrowing, according to the Barclays Equity Gilt Study.

It predicts the average long-gilt yield will rise from its current level of around 4% to 10% or beyond.

The Equity Gilt Study is one of the oldest and most-respected research reports in the City, having been published continuously since 1956, with UK data going back to 1899 and US data to 1925.

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