--- title: "British funds are snapping up government bonds, completely misreading the Bank of England's stance in the market" type: "News" locale: "en" url: "https://longbridge.com/en/news/279461141.md" description: "Two major asset management companies in the UK, Legal & General Investment Management and Aviva Investors, are actively purchasing UK government bonds, believing that the market has misjudged the Bank of England's response to the Middle East war. Although the market's expectation of a rapid shift has led to a sell-off of government bonds, this has provided a buying opportunity for contrarian investors. Since the conflict began, the yield on two-year UK government bonds has risen by more than 0.5 percentage points" datetime: "2026-03-17T15:46:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279461141.md) - [en](https://longbridge.com/en/news/279461141.md) - [zh-HK](https://longbridge.com/zh-HK/news/279461141.md) --- # British funds are snapping up government bonds, completely misreading the Bank of England's stance in the market The two major asset management giants in the UK—Legal & General and Aviva Investors—are buying UK government bonds. They firmly believe that the market has misjudged the Bank of England's response to the Middle East war. Previously, the market's expectation of a rapid shift triggered a sell-off of UK government bonds, but it also created buying opportunities for contrarian investors. Since the conflict began, the yield on two-year UK government bonds has risen by more than 0.5 percentage points ### Related Stocks - [IGLT.UK](https://longbridge.com/en/quote/IGLT.UK.md) - [L100.UK](https://longbridge.com/en/quote/L100.UK.md) - [RUKS.UK](https://longbridge.com/en/quote/RUKS.UK.md) - [AV.UK](https://longbridge.com/en/quote/AV.UK.md) - [VGOV.UK](https://longbridge.com/en/quote/VGOV.UK.md) - [LGEN.UK](https://longbridge.com/en/quote/LGEN.UK.md) ## Related News & Research - [AllianzGI, Royal London stick with UK gilts, bet Starmer rivals will not forget 2022 rout](https://longbridge.com/en/news/286592457.md) - [UK bonds claw back losses as Starmer challenger fails to emerge](https://longbridge.com/en/news/286219986.md) - [BoE's Taylor: Labour market is quite weak.](https://longbridge.com/en/news/287230542.md) - [BoE's Taylor: It is not clear that risks will materialize at all.](https://longbridge.com/en/news/287222417.md) - [BOE'S TAYLOR: UK HAS SEEN A TIGHTENING OF FINANCIAL CONDITIONS](https://longbridge.com/en/news/287221642.md)