U.K. government bonds, or gilts, are likely to experience improved performance due to easing inflation concerns as energy prices drop, eToro's Lale Akoner says. Oil prices have dropped significantly since the U.S.-Iran peace deal reached in mid-June. As a result, investors have lowered their expectations of the Bank of England raising interest rates in the coming months and currently price in an 84% probability of a BOE rate hike in December, while they fully priced in a one-quarter-point BOE rate rise prior to the Middle East peace deal, LSEG data show. (miriam.mukuru@wsj.com)
Dow Jones Newswires
Reduced Energy Costs and Lower BOE Rate Rise Expectations Likely to Boost Gilts' Performance — Market Talk
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U.K. government bonds, or gilts, are likely to experience improved performance due to easing inflation concerns as energy prices drop, eToro's Lale Akoner says. Oil prices have dropped significantly since the U.S.-Iran peace deal reached in mid-June. As a result, investors have lowered their expect…