Vanguard Ukgilt Share Price (VGOV)

Supposedly the coupons dropped a bit last night from the fall out of the US CPI figures.....quoted from one of the FTSE update news channels

"He said: The Treasury market had its worst day since the Kamikwaze Budget sparked turmoil in gilts.

"The 2yr jumped about 20bps, the most since the regional banking crisis a year ago. The 10yr yield has also risen more than 20bps since the data was released and traders have now priced out a June rate cut."

I'll be honest i misread the situation, and top sliced some of my USA ETF profits and put them in here expecting the UK interest rate to come down quicker than the US rates this year after the US CPI news. Oh well, i'll see how it plays out

Coupons have risen pretty consistently over the past year, shame this hasn't been quite as robust. Am i being stupid shouldn't the SP here be related to the coupon price i.e. inverse of interest rate expectations ....does look as though the SP here got caught up in the USA rate expectation furore, i still hope to see a UK cut fairly soon, especially if the press predictions of sub 2% inflation soon happen.

Yes unless inflation and interest rates tick up again, then this will drop. . This is only yielding ~4% and UK inflation is 4%, you're not making any money.

If you want to preserve your capital and you think rates might rise over the next few years, put it in an ISA. If you think rates will come down, better here for me.

With the UK interest rates almost peaked and expected to come down slowly in next few months, is it fair to say that this has hit near bottom and that it will slowly rise from here? The yield appears to be decent as well, so far someone who does not have this ETF, is it a good time to enter and keep accumulating for a longer run? it seems to be less risky than other stocks out there.

This should bottom as soon as the UK interest rate increases stop, leaving a basket of funds with a pretty good yield and that will rise in value as interest rates are eventually cut.

Seems straightforward, what am I missing?