Carney’s Debut Speech Frees Gilt Yields to Climb: U.K. Credit

Investors who’ve driven 10-year gilt yields higher ever since Mark Carney joined the Bank of England now have the governor’s blessing.

In his first speech as head of the central bank, Carney told business leaders in Nottingham in the English midlands that “longer-term market interest rates are certainly relevant, but what matters most to you is actually what happens to bank rate, now and in the future.” He said that’s because rates on 70 percent of loans to households and more than 50 percent of loans to businesses are linked to the BOE benchmark.