Investors may be too confident that Bank of England Governor Mark Carney will increase interest rates before his U.S. counterpart Janet Yellen.
Two-year gilt yields rose to the highest since 2011 relative to similar-maturity U.S. notes last month as a strengthening U.K. recovery fueled speculation BOE officials might increase the benchmark rate from a record low as early as this year.
The yield difference has since narrowed, and with the American economy springing back to life in the second quarter the spread is set to tighten further, according to strategists at Fathom Consulting and ADM Investor Services International.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015