Central banks rule roost in gilt market

UK govt bonds trading at close to all-time low as parties jostle for lead in run up to May 7 polls

UK bond investors have bigger concerns than who wins the election on May 7, with the past five years showing that central bankers, not politicians, hold power for financial markets.

Gilt yields have plunged since Prime Minister David Cameron inherited the biggest budget deficit in British peacetime in 2010, as the Bank of England and other central banks unleashed unprecedented monetary stimulus to combat the financial crisis.