Investors reduce bets on BoE rate hike after coronavirus variant news
Reuters
Published Nov 26, 2021 03:18AM ET
Updated Nov 26, 2021 11:25AM ET
LONDON (Reuters) - Investors scaled back their bets on Friday on the chance of a Bank of England interest rate hike in December after a coronavirus variant that might be harder to combat with vaccines was detected in South Africa.
Interest rate futures were pricing a roughly 55% chance of a 15 basis-point rate hike by the BoE on Dec. 16 - after its next scheduled monetary policy meeting - compared with a roughly 75% chance on Thursday.
The BoE's new chief economist, Huw Pill, said he thought the way was clear for a first rise in rates since the start of the coronavirus pandemic. But he declined to send any signal about the likelihood of a move as soon as next month and he said there were still risks to public health.
Yields on 10-year British government bonds tumbled by 15 basis points, their biggest one-day fall since the onset of the financial crisis in March 2020, mirroring moves in U.S. Treasuries and other government bonds.
Yields on two-, five-, 20- and 30-year gilts fell by between 12 and 13 basis points.
The yield on Britain's 10-year inflation-linked gilt fell to a record low of -3.347%.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.