Short-dated Gilt Yields Could Fall as Investors Reprice BOE Rate-rise Expectations
Dow Jones07-02
0912 GMT - Yields on short-term gilts could decline as markets cut back expectations of interest-rate rises from the Bank of England, Jefferies' Mohit Kumar and Modupe Adegbembo say in a note. In contrast, long-dated gilt yields could stay elevated as investors place a fiscal risk premium on the bonds, the economists say. Yields on two-year gilts are last up 1.7 basis points at 4.145% while yields on 10-year gilts rise 4.1 basis points to 4.803%, Tradeweb data show. U.K. money markets currently fully price a 25 basis-point rate increase by March 2027, according to LSEG data. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
July 02, 2026 05:12 ET (09:12 GMT)
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