Bets Boosted for Bank of England Hike Signal as Gilt Gloom Poised to Deepen
- JPMorgan, Citi expect BOE hawkish signal at Thursday’s meeting
- Ten-year gilt yields jumped most since January 2018 last month
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U.K. government bonds had their worst month in over a year in April and May isn’t looking much better either.
Gilts slid last month as fears of a no-deal Brexit faded, tempering demand for the safety of government debt, after Britain won an extension to the deadline for its departure from the European Union. Bonds look set to extend losses amid expectations that improving U.K. economic data may now wield a stronger influence on the Bank of England’s policy, boosting the odds of a rate hike.