UK Bonds’ Best Run in Two Years Is Winning Over Global Investors
UK yields are still the highest among Group-of-Seven nations, but the gap is narrowing thanks to a surge in market bets on interest-rate cuts.
Photographer: Jose Sarmento Matos/BloombergOctober was an unusually good month for the UK bond market.
Gilts posted their best performance in almost two years, and investors including Aberdeen Group Plc, Fidelity International and JPMorgan Asset Management are betting on more gains. Goldman Sachs Group Inc. analysts have slashed their yield forecasts, citing easing inflation pressures and signs Chancellor Rachel Reeves will announce tough steps needed to get the budget in order.