Gilts indicate investors are more bullish than BoE

07/12/2013 | Bloomberg

For the third consecutive week, yields on U.K. government bonds have increased, despite indications from Bank of England policymakers that they will keep lending rates low. "The economic numbers in the U.K. are looking a lot better than in the eurozone, and the spread is reflecting those fundamentals," said Jason Simpson, a rate strategist at Banco Santander. "The backdrop does look like it's going to continue to improve in the U.K., and it will be a wrestling match between the BoE and the market, with the market biased toward pushing yields higher."

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