UK Bonds on Best Run in Months as Traders Nudge Up Rate Cut Bets

Gilts are rallying to start the year as the UK government shifts away from long-term borrowing and weaker inflation fuels bets on Bank of England interest-rate cuts.

UK government bonds have advanced across the curve, with benchmark 10-year gilts on track for the biggest weekly gain since April, significantly outperforming German and US peers. Thirty-year gilts are headed for their best week since November.