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