Booming Britain Condenses Curve to Least Since July: U.K. Credit

Shorter-maturity U.K. government bonds are yielding more relative to their longer-dated peers than at any time since July, a sign traders are betting the fastest-growing developed economy is likely to gather momentum.

Speculation the Bank of England will raise borrowing costs as soon as this year is leading investors to shun short-term securities. The extra yield demanded to hold 10-year gilts instead of two-year debt has fallen 49 basis points, or almost half a percentage point, this year to 196 basis points.