Inside the Fund Manager's Head
The changing yield curve
In this video, BNY Investments Newton head of mixed assets investment, Paul Flood comments on the direction of bond yields over the past three to six months and the nuance between the US and UK yield curves.
3:00 mins Watch
Published on 29 September 2025
Key points:
- Bond yields have risen globally over the past three to six months, notably in the UK, reflecting market concerns about UK fiscal policy. US 30-year yields remain stable amid a rising fiscal deficit.
- The yield curve has steepened in both the UK and US. In the US, this is driven by a drop in 10-year yields, indicating market expectations of future interest rate cuts by the Federal Reserve.
- A steeper yield curve typically benefits financial stocks, while bond proxy sectors like consumer staples and healthcare face pressure, particularly healthcare due to political scrutiny on pharmaceutical pricing in the US.
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2662600 Exp : 29 December 2025
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