Laith Khalaf: Bonds - it's no time to buy

Tempering of the QE programme?

clock • 3 min read

The market is expecting an interest rate hike in the UK by Christmas but - while it is right to be repricing - it has also got a bit ahead of itself, writes Laith Khalaf

The market is now expecting an interest rate hike in the UK by Christmas, largely thanks to the inflationary pressures, which will inevitably follow the energy crisis and some more dovish rhetoric from the Bank of England. The overnight index swaps market implies there is now a two in three chance of a rate rise this year, and a one in three chance of a hike at the next meeting on 4 November. At the same time, the 10-year gilt yield has risen from 0.5% to 1.2% in the space of two months. There could be a bigger bond sell-off to come if rate hikes are truly imminent. It seems to me lik...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

A very old saying with a very modern problem: Exploring behavioural biases

A very old saying with a very modern problem: Exploring behavioural biases

'If only the calendar could tell us when to take risk and when to retreat'

Ian Jensen-Humphreys
clock 16 April 2026 • 4 min read
Franklin Templeton launches enhanced indexing equity fund range for UK investors

Franklin Templeton launches enhanced indexing equity fund range for UK investors

Four funds launched

Michael Nelson
clock 13 April 2026 • 1 min read
Risk Warning Review plans aim to address 'negative framing' of investing

Risk Warning Review plans aim to address 'negative framing' of investing

Lowest investment rate in G7

Alex Sebastian
clock 09 April 2026 • 2 min read