Bond yields soar as expected rate hike looms

Two-year yields saw the biggest increase

The likelihood of a faster-than-anticipated interest rate rise from the Bank of England has weighed on investors’ appetite for UK bonds, according to industry commentators, who warned that as recently as last month markets had not priced in a hike until “the mid-part of 2022”.

However, several have pointed out there are pockets of the bond market that could be set to benefit from the current backdrop, and so are encouraging investors not to ditch the asset class completely.  Market Movers Blog: Bank of England 'will have to act' to stem inflation Government bond yields soared to pre-pandemic levels for the first time this month, in advance of an expected rate hike from the Bank of England. Two-year yields saw the biggest increase, rising seven basis points in a day, closing above 0.6% for the first time since January 2020. Three-year, five-year, seven-ye...