The chart above simulates the price history of a 2% coupon 30 year gilt purchased at the beginning of January 2017 and held until now (18 October). As you clearly see, the price rose throughout 2019, 2020 and most of 2021, then abruptly collapses, with the decline accelerating towards the third quarter of 2022. As journalists live to say “gilt prices fall as yields rise”. Quite.
No comment for now. I will discuss the odd but significant blip in March 2020 in the next post.