Uncertain Interest Rate Outlook: UK Long-Dated Bond Yields Approach 26-Year High

Zhitong
2024.12.20 11:08
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The UK government's long-term borrowing costs are close to their highest level since 1998, with the 30-year government bond yield rising to 5.16%. Due to the unclear expectations of investors regarding the Bank of England's interest rate cuts next year, market bets on the number of rate cuts have changed frequently. Policymakers are facing the dilemma of inflationary pressures and sluggish economic growth, making 2025 an important year for the UK government bond market. The Governor of the Bank of England stated that economic uncertainty has intensified, making it impossible to commit to the timing and extent of interest rate cuts