Gilt yields hit 3% mark as BoE silence disappoints

clock

Update: Benchmark ten-year gilt yields have hit a fresh two-year high of over 3% after the Bank of England opted not to release further ‘forward guidance' earlier this afternoon.

With investors continuing to bring forward their rate rise expectations in spite of the Bank's reassurance that rates will remain low for several years yet, some had expected the BoE to issue a statement alongside today's policy decision. But the decision, which saw the Bank keep QE on hold as expected, was not accompanied by the kind of statement seen in July, when policymakers said expectations of future rate rises were "not warranted". That pushed the yield on 10-year gilts to a two-year high of just over 3%, up from 2.88% as investors increased bets UK rates will rise sooner than ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot