Gilt Yields Edge Lower Ahead of BOE Rate Decision, After Fed Rate Rise
Dow Jones
6 hours ago
0727 GMT - Yields on U.K. government bonds, or gilts, decline modestly ahead of a Bank of England rate decision at 1100 GMT. Investors expect rates to stay on hold and will watch the vote split and the BOE's evaluation of the second-order inflation effects. Markets price in only a 19% chance of a rate hike on Thursday but fully expect three quarter-point rate increases by March 2027, LSEG data show. The U.S. Federal Reserve raised interest rates on Wednesday as widely expected. Fed Chairman Kevin Warsh emphasized that inflation remains very high, raising the prospects of more Fed rate rises at future meetings. Ten-year gilt yields fall 1.3 basis points to last trade at 5.282%, Tradeweb data show.
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