As markets navigate a likely end to the steepest interest rate rises in decades, investors say the Bank of England has been less consistent in its messaging than other major central banks, making positioning in UK assets a particular challenge.
Traders, who bet the BoE was nearly done in May, now price in over 100 basis points of further hikes. U.S. Federal Reserve and European Central Bank expectations have meanwhile risen only marginally.
The BoE was the first major central bank to start hiking rates. But investors said a lack of clarity was now a reason behind still surging UK borrowing costs and volatility atBritain's 10-year bond yield has jumped almost 80 bps this year while the U.S. and German equivalents have fallen. , .
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