Back
31 Mar 2015
UK rates still bearish – BAML
FXStreet (Edinburgh) - In the view of analysts at BAML, the outlook for UK rates still points southwards.
Key Quotes
“Our long term view on UK rates remains bearish, with strong economic growth, a diminishing output gap and an increasingly tight labour market all supporting our hawkish view of rate hikes relative to the market”.
“It is also aligned with our expectations of rising US and Eurozone yields”.
“The market is now pricing the first rate hike in September next year and we would expect some concession on this next month”.
“Further out the curve we would expect gilts to underperform once supply pace picks back up again in after the start of the new fiscal year”.
Key Quotes
“Our long term view on UK rates remains bearish, with strong economic growth, a diminishing output gap and an increasingly tight labour market all supporting our hawkish view of rate hikes relative to the market”.
“It is also aligned with our expectations of rising US and Eurozone yields”.
“The market is now pricing the first rate hike in September next year and we would expect some concession on this next month”.
“Further out the curve we would expect gilts to underperform once supply pace picks back up again in after the start of the new fiscal year”.