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

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

Budget 26: Stamp Duty on shares to be swapped for Securities Transfer Tax

By late 2027

Patrick Brusnahan
clock 28 October 2026 • 1 min read
Investment tax relief rises by smallest amount in four years amid recent Budget measures

Investment tax relief rises by smallest amount in four years amid recent Budget measures

Bowmore Financial Planning research

Jack Roach
clock 28 October 2026 • 2 min read
Defaqto to launch rating for newer funds and portfolios

Defaqto to launch rating for newer funds and portfolios

Combines Defaqto and RSMR expertise

Jen Frost
clock 27 October 2026 • 2 min read