JPMorgan Backs December BOE Cut as Weak Jobs Data Spurs UK Bonds

The UK’s weakening labor market is prompting more economists to pencil in a December interest-rate cut from the Bank of England, with the speculation putting 10-year gilts on track for their best day since June.

JPMorgan Chase & Co.’s Allan Monks is now calling for a move in December rather than February previously, joining the likes of Goldman Sachs Group Inc., ING Groep NV and Nomura Holdings Inc. Money market traders reckon there’s about an 85% chance of a reduction before year-end, with the bets driving 10-year bond yields down to 4.37%, near the lowest this year.