I have noticed that the steady increase in bond prices that has occurred has rapidly reversed in the past week -all mine are off between 0.3 and over 1 point in the case of the new IPF one. I assume this is related to the change in the direction of gilt prices as shown on the home page (?). I have been trying to figure out the relationship between the two ie if the gilts drop 1% is there a rule of thumb as to what this would be expected to do to bonds with say 5 years to go?
Also anyone any ideas on why the change (ie is the market now seeing (more) inflation on the horizon) - hadnt heard anything though the new BoE is supposedly more happy to allow a little more inflation than the outgoing one. Just a thought.
Any insight appreciated as a chunk of my recent equity gains is being eroded by the bond drops in recent days !