Gap Between U.K. Short-Term and Long-Term Gilt Yields Could Widen Further
Dow Jones07-31
1505 GMT - The yield difference between short-dated gilts and their long-dated equivalents could widen further, Bank of America strategists say in a note. This week's BOE policy meeting indicated that there are no signs of second-order inflation effects so far, easing concerns about the prospects of rapid BOE rate increases in the coming months. Short-term gilt yields are expected to fall as markets adjust their BOE rate expectations, while long-dated gilt yields could remain elevated due to global geopolitical concerns and U.K. fiscal uncertainty. Two-year gilt yields last trade at 4.388%, while 30-year gilt yields last trade at 5.753%, Tradeweb data show.
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