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

Why the bull market in precious metals may be starting again

Why the bull market in precious metals may be starting again

Silver and gold again – who would have thought it?

Paul Wood
clock 20 May 2026 • 2 min read
Omnis Investments launches passive range for Openwork and 2plan advisers

Omnis Investments launches passive range for Openwork and 2plan advisers

L&G to run day-to-day investment management

Patrick Brusnahan
clock 19 May 2026 • 2 min read
Digital bank Zopa gains targeted support authorisation

Digital bank Zopa gains targeted support authorisation

Receives regulatory approval for investment products

Sophia Panayi
clock 19 May 2026 • 1 min read