The yield on the UK 10-year government bond rose back above 1.2%, moving closer to a near three-year high of 1.3% hit earlier this month, amid prospects of faster monetary policy tightening due to stubbornly high inflation. The Bank of England will likely be raising interest rates again in February, a move that is expected to be followed by multiple rate hikes this year, as Britain's consumer price inflation hit a near 30-year high against a backdrop of solid economic growth and strong jobs data. Also, the US Federal Reserve signaled at its January meeting it would start raising rates as early as March. Elsewhere, British Prime Minister Boris Johnson is braced for the publication of an official investigation into Downing Street parties during lockdowns.
Historically, the United Kingdom Government Bond 10Y reached an all time high of 16.09 in November of 1981. United Kingdom Government Bond 10Y - data, forecasts, historical chart - was last updated on January of 2022.
The United Kingdom Government Bond 10Y is expected to trade at 1.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.50 in 12 months time.