Buy-side wary of ‘Corbyn premium’ in Gilts as May fights for future

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Buy-side wary of ‘Corbyn premium’ in Gilts as May fights for future

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UK government bonds have been playing their traditional role as a haven trade for sterling investors amid the Brexit inspired turmoil of the last 2.5 years. But one possible outcome, the likelihood of which has grown this week — a Labour Party victory in a general election — could push up Gilt yields because of what investors have dubbed the ‘Corbyn premium’.

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