Bond yields soar as expected rate hike looms

Two-year yields saw the biggest increase

Elliot Gulliver-Needham
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.
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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...

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