BOE Rate Cuts Are Likely to Push Gilt Yields Lower -- Market Talk

Dow Jones01-16

0954 GMT - Gilt yields are expected to fall in the coming months as the Bank of England cuts interest rates further, Capital Economics' Joe Maher says in a note. Money markets fully price in one BOE interest rate cut by June and a possible second rate cut later in the year, LSEG data show. The BOE could cut rates by more than this, given that inflation is likely to fall to the 2% BOE target in April, Maher says. The shift to supplying more short-dated rather than long-dated gilts is also likely to lead to lower yields, he says. "The efforts to shorten [the Debt Management Office's] debt issuance mix is likely helping to address the demand/supply imbalance in the gilt market." (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

January 16, 2026 04:54 ET (09:54 GMT)

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