1246 GMT - The Bank of England could keep interest rates on hold at 3.75% in the coming months, enabling short-term gilt yields to fall, Aberdeen Investments' Matthew Amis says in a note. "If the Strait of Hormuz opens in the coming weeks, then the BOE will not hike rates and the short-maturity gilt yields will have to remove the hikes priced, therefore [meaning] lower yields," he says. Investors hope for a near-term resolution to the Middle East conflict. Markets fully price in two quarter-point BOE rate rises and a 64% chance of a third BOE rate hike by year-end, LSEG data show. Two-year gilt yields are last down 0.6 basis points at 4.516%, Tradeweb data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
May 13, 2026 08:46 ET (12:46 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments