UK Bond Yields Rise Amid Higher Than Expected Inflation

According to BlockBeats, on November 20, UK government bond yields increased following inflation data that surpassed expectations, leading to heightened market anticipation of fewer interest rate cuts. The annual inflation rate for October rose to 2.3% from September's 1.7%, exceeding the 2.2% forecast by economists surveyed by The Wall Street Journal. Richard Flax, Chief Investment Officer at Moneyfarm, noted in a report that the inflation uptick reduces the likelihood of a rate cut in December, as policymakers remain cautious. Data from the London Stock Exchange Group indicates that the probability of a December rate cut by the Bank of England stands at 16%. According to trading platform Tradeweb, the yield on the 10-year UK government bond increased by 5 basis points to 4.485%, while the 2-year bond yield climbed 4 basis points to 4.451%.