Markets felt a little tired in June. The UK equity market had to come to terms with the disastrous showing by the Conservatives in the general election and all the uncertainty that comes with a hung parliament. The FTSE All-Share Total Return Index was off 2.5 per cent. The US Federal Reserve increased interest rates for the second time this year and central bankers in the UK and Europe hinted that the end of the era of easy money was drawing closer. This led to a sell-off in government bonds on both sides of the Atlantic, with the UK 10-year gilt yield moving up to 1.27 per cent and US Treasury 10 years up to 2.3 per cent – admittedly, in both cases only returning to the levels seen a few months ago.
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