UK Bond Yields Spike

 

 

UK Bond Yields Do Monster Spike

 

UK Bond Yields Do Monster Spike, Pound Plunges as Bond Vigilantes Rise from Graves, Go after Government’s Fiscal Recklessness Bank of England: won’t "hesitate" to hike rates "as much as needed." Bond market fears much higher inflation and interest rates, for much longer. The one-year yield on UK gilts spiked by a monstrous 65 basis points today to 4.16% at the moment, bringing the spike that started on Tuesday to 121 basis points. He said to the world – practically daring the bond vigilantes to come out of their graves – when asked about the plunge of the pound and the spike in yields last week, that he wasn’t focused on market moves. "They’re tasked to deal with inflation," he said. " The MPC will not hesitate to change interest rates by as much as needed to return inflation to the 2% target sustainably in the medium term, in line with its remit."