UK Funds Snap Up Gilts in Bet That Markets Have BOE All Wrong

Two of Britain’s biggest asset managers are buying UK government bonds, convinced the market has misjudged how the Bank of England will respond to the war in the Middle East.

Legal & General and Aviva Investors both added exposure to gilts this month as surging energy prices prompted traders to abandon bets on interest rate cuts and wager instead that resurgent inflation would force a hike.