As anticipated, the Bank of England raised the Bank Rate by 75bps to 3% on Thursday. The decision marks the largest interest rate hike in 33 years and brings the cost of borrowing to a 14-year high. Notably, seven of the nine MPC…
On Monday, UK Gilts rallied on news that former Chancellor of the Exchequer Rishi Sunak is the new leader of the Conservative Party. The 10-year yield fell by 31bps while the 2-year yield ended the day 24bps lower – levels…
BCA Research’s Global Fixed Income Strategy service continues to recommend underweight allocations to US Treasuries and UK Gilts in global bond portfolios, while targeting a below-benchmark overall global duration exposure…
After moderating in August, UK CPI inflation firmed again in September, rising back up to its 40-year high of 10.1% y/y – slightly above expectations. Food and goods prices (particularly clothing and furniture &…
Is the US in a wage-price inflation spiral that could lead to more aggressive Fed rate hikes? Is it time to buy UK Gilts after a wild month of volatility? We answer "no" to both questions, as we discuss in this week’s report.
The ECB will continue to lift rates due to sticky inflation and a tight labor market. Will it be enough to push long-term German yields higher?
According to BCA Research’s Counterpoint service, the UK’s near death experience sends three salutary warnings to all investors. Warning 1: Beware ‘Hidden Leverage’ Hidden leverage is not unique…
Is the BoE’s emergency intervention in its bond market a British idiosyncrasy that global investors can ignore? No, the UK’s near death experience sends three salutary warnings, with implications for all investors.