BlackRock Upgrades UK Bonds in Bet on Faster BOE Cuts
- Call is latest in series of investors favoring gains for gilts
- Sees BOE cutting faster than expected due to soft UK economy
The facade of the Bank of England (BOE) in the City of London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
BlackRock Inc.’s research arm upgraded its call on UK government bonds to overweight from neutral, saying the Bank of England will slash interest rates faster than expected by markets.
“We are overweight,” BlackRock strategists including Wei Li wrote in a weekly note. “Gilt yields offer attractive income, and we think the Bank of England will cut rates more than the market is pricing given a soft economy.”