Bond yields soar as expected rate hike looms

Two-year yields saw the biggest increase

clock • 4 min read
Inflation is causing the Bank of England to seriously consider raising rates from their record low of 0.1% later this year.
Image:

Inflation is causing the Bank of England to seriously consider raising rates from their record low of 0.1% later this year.

The likelihood of a faster-than-anticipated interest rate rise from the Bank of England has weighed on investors’ appetite for UK bonds, according to industry commentators, who warned that as recently as last month markets had not priced in a hike until “the mid-part of 2022”.

However, several have pointed out there are pockets of the bond market that could be set to benefit from the current backdrop, and so are encouraging investors not to ditch the asset class completely...

To continue reading this article...

Join Investment week

  • 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

More on Bonds

Oliver Bodmer

The lurking sanctions threat facing investment managers in the search for returns

Sky-high equity valuations and near historic low yields in fixed income has left fund managers looking elsewhere for returns.

Oliver Bodmer
clock 30 November 2021 • 3 min read
Nicolas Cremieux is co-head of convertible bonds

Mirabaud AM expands convertible bonds offering with global SMID-focused strategy

Convertible bonds in a ‘sweet spot’

clock 30 November 2021 • 1 min read
Dan Cartridge of Hawksmoor

Young Fundpicker: It is an extraordinary time to be an investment professional

Young Fundpicker

Dan Cartridge
clock 29 November 2021 • 3 min read
Trustpilot