Yields on U.K. government bonds have rallied across the curve as the Bank of England adopts a more “hawkish” tone.
The majority of Monetary Policy Committee members think “some withdrawal of monetary stimulus is likely to be appropriate over the coming months.”
Also supporting yields is the BoE now expects inflation to rise above +3% in October.
Two-year gilt yields have rallied to +0.32%, their highest level since July and sharply up since levels of +0.13% only last week. Five, 10 and 30-year yields are also backing up.
The FTSE 100 is trading down -0.36% as GBP/USD trades up +0.8% at £1.3320 and EUR/GBP is down -0.82% at €0.8926.
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Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
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