Bond markets expecting hike in US interest rates

UK Government bond yields should outperform their US counterparts over the coming months, as the for...

UK Government bond yields should outperform their US counterparts over the coming months, as the former have already absorbed three rate rises. The US Treasury market has yet to price in future rate rises as the Federal Reserve has not changed its policy on maintaining current short-term interest rates. However, improving newsflow from the labour market and recovering corporate profitability is likely to spur the US Fed into action later in the year. Paul Griffiths, chief investment officer at Axa Investment Managers, says he expects the situation in the US to be similar to that of 199...