Read the article attached below to understand how the Bank of England are expected to keep interest rates high to lower inflation. This has however affected the yields on government bonds.
(Subscribe to the Financial Times)
Government bonds rallied in the US and Europe on Monday ahead of a busy week of central bank commentary, inflation data, and corporate earnings.
Yields on 10-year US Treasuries fell 0.06 percentage points to 4.10 per cent. Yields on 10-year German Bunds — the benchmark for the eurozone — fell 0.05 percentage points to 2.25 per cent. Yields move inversely to prices.
The US Federal Reserve will set monetary policy on Wednesday, followed by the Bank of England on Thursday. Both are widely expected to keep interest rates on hold at this week’s meetings but traders will be scrutinising policymakers’ comments for any signals on when they might make their first cuts.