UK bond yields are pushed up by robust global growth

Bond yields in the UK are more attractive than they have been for some time but have the potential t...

Bond yields in the UK are more attractive than they have been for some time but have the potential to rise even higher, according to Anthony Fletcher, fixed income portfolio manager at Aberdeen. "There is an expectation within the markets that the Bank of England will push up interest rates to 5% but it is probable they will peak at 4.75%. Thus, at the front end, UK bonds are cheap compared to where they should be trading," explains Fletcher. The mid part of the curve is seeing UK bonds driven up by robust growth in the global economy and rising interest rates. "The long end of the curve ...