UK Funds Snap Up Gilts in Bet That Markets Have BOE All Wrong

Two of Britain’s largest asset managers are buying UK government bonds, arguing the market has mispriced how the Bank of England will respond to the war in the Middle East and likely expects a more dovish reaction. Their buying increases safe‑haven demand for gilts, may compress yields and signals a potential repricing of UK rate expectations and broader positioning in fixed income.

Analysis

Two of Britain’s largest asset managers are buying UK government bonds, arguing the market has mispriced how the Bank of England will respond to the war in the Middle East and likely expects a more dovish reaction. Their buying increases safe‑haven demand for gilts, may compress yields and signals a potential repricing of UK rate expectations and broader positioning in fixed income.