The Bank of England is gaining on the Federal Reserve among investor perceptions of how soon they’ll raise interest rates, sending the pound higher for a seventh day versus the dollar in its longest winning run in three years.
Sterling climbed to the highest level in two months versus the U.S. currency. The BOE probably will increase interest rates in 12 months time, four months after the Fed, according to Morgan Stanley indexes. As recently as last month the predicted difference was about 10 months. The yield on U.K. 10-year government bonds rose to a seven-week high as the nation sold 3 billion pounds ($4.6 billion) of gilts due in September 2025.
