Reported 12 months ago
After more than a year, an anomaly in the UK bond market ended as the 10-year yield rose above the two-year mark, indicating a return to normalcy. This shift reflects investors' belief that the era of tight monetary policy is coming to an end, leading to a more typical bond market state. With the Bank of England expected to ease policy in August, the bond curve is flattening, and investors predict further steepening support. The market's reaction is seen as positive and not reflective of a deep economic slump, with expected rate cuts and an improved economic outlook.
Source: YAHOO