Insight Investment, the $836 billion asset manager owned by BNY Mellon, has moved into long‑dated UK gilts after a sharp sell‑off this year. The firm targets yields north of 6%, the highest among developed‑market sovereigns, hoping the premium compensates for credit and duration risk. Head of global rates Harvey Bradley said the firm is buying forward contracts where rates sit at the top of the curve.

UK government bonds have tumbled since the Bank of England signaled tighter policy, pushing gilt yields from sub‑4% to above 6% in a matter of months. The plunge left many investors wary, but also created a price gap that value‑oriented managers like Insight see as an entry point. The move may tighten demand for short‑term funding and lift overall market liquidity.

Analysts note that a sustained inflow into long‑dated gilts could compress yields, forcing the Bank of England to reassess its rate trajectory. Meanwhile, Insight’s bet adds a rare dose of institutional confidence to a market still reeling from fiscal uncertainty. The firm’s latest purchases push its exposure to UK sovereigns above 2% of assets under management.