Are 'significantly overvalued' UK bonds a ticking timebomb?

Inflation fell to 2.6% in June

The UK bond markets are significantly overvalued and the Bank of England has failed in its primary objective to deliver price stability, writes Christopher Peel, chief investment officer at Tavistock Investments.

The average yield in the gilt market is a meagre 1.60% and inflation is on course to climb well above 3% by the end of the year. The powerful combination of full employment, record low interest rates and rising inflation will have potentially devastating consequences for the most risk-adverse of investors. 'This will kill chances of a rate rise'; Sterling falls on surprise inflation drop to 2.6% in June The Bank of England is not responsible for the UK's decision to leave the European Union, but it is the fault of the Monetary Policy Committee that the increase in inflation has bee...