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

Chaos is not a ladder: Navigating human behaviour at times of market stress

Chaos is not a ladder: Navigating human behaviour at times of market stress

'It is important to maintain perspective'

Sacha Chorley
clock 09 March 2026 • 4 min read
Four reasons why direct engagement can still make a difference

Four reasons why direct engagement can still make a difference

'Quantitative data arguably tells only half the story'

Simon Wood
clock 05 March 2026 • 4 min read
Darius McDermott: Is income under pressure?

Darius McDermott: Is income under pressure?

‘The period of abundant income is ebbing'

Darius McDermott
clock 04 March 2026 • 5 min read