BOE Could Keep Rates Unchanged For Now, Enabling Short-Term Gilt Yields to Fall -- Market Talk

Dow Jones05-13

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.

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