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U.K. Government Bonds Underperform Peers Amid Oil Price Jump -- Market Talk

Dow Jones03-19 17:57

0957 GMT - Yields on U.K. government bonds rise faster than their eurozone and U.S. equivalents. Rising oil prices have sparked renewed concerns about inflation, which could prevent the Bank of England from cutting interest rates. "The British economy is highly sensitive to energy prices," Swissquote's Ipek Ozkardeskaya says in a note. The BOE is expected to keep rates unchanged in a decision at 1200 GMT. Meanwhile, U.K. money markets price in a 60% probability of the BOE raising interest rates in June, LSEG data show. "The higher energy prices climb, the further away the dream of a BOE cut drifts," Ozkardeskaya says. U.K. 10-year gilt yields rise 6.5 basis points to 4.816%, Tradeweb data show. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

March 19, 2026 05:57 ET (09:57 GMT)

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