Mark Carney’s first Monetary Policy Committee (MPC) meeting statement convinced financial markets that the new governor sees the base rate staying at its current level for some time to come. The MPC described the pricing in on of upcoming interest rate rises as “not warranted”.
Nevertheless, ten year gilt yields have continued to rise to 2.4% currently, compared to 2.2% a month ago, and 1.7% back in April. While some are predicting more QE to come, there is also a growing school of thought that believes bond yields are ultimately destined to drift steadily upwards.
Source : Knight Frank