Why choosing UK bonds offers a bulletproof shield against chaos

A column argues that UK gilts can provide a “chaos shield” despite fears around state spending and a national debt level of £3 trillion (95% of national output). It cites hedge fund managers who say the negative news is already priced in and highlight the “money-back” pledge at maturity, along with yields that are currently supported by the inflation-and-rate sensitivity of gilt prices. The article notes examples such as the five-year yield above 5% after comments from Andy Burnham, and a 10-year gilt yield reaching 5.04%. It warns that an Oct. 28 Budget could trigger another yield spike if Chancellor John Healey proposes large spending. It also includes caution from Quilter Cheviot, while noting tax-free income and potential appeal of short-dated gilts.