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

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...