Changing BOE Expectations Drive Swings in U.K. Gilt Yields -- Market Talk

Dow Jones04-30

1323 GMT - Bond markets will watch the Bank of England's next move closely as changing expectations for future policy rates have driven sharp swings in gilt yields, BlackRock Investment Institute's Vivek Paul says in a note. The BOE left policy rates on hold, as expected, on Thursday, but flagged a risk of higher rates ahead. Money markets price in a potential for three rate hikes this year, LSEG data show. Over the last two months, the gap between short- and long-term yields--a gauge of the compensation investors demand for holding longer-term U.K. gilts--has been steady, the U.K. chief investment strategist says. BlackRock stays neutral U.K. gilts on a six- to 12-month horizon. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

April 30, 2026 09:23 ET (13:23 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment