Weekly market commentary | BlackRock Investment Institute

We leaned against two big swings in recent weeks: markets pricing in sharp Fed rate cuts and a jump in UK yields. Those moves have since started unwinding, especially in short-term yields. We see room for UK gilt yields to fall further relative to other major government bond yields: A tougher UK growth outlook paves the way for the Bank of England to cut further than the Fed, in our view. After an initial dip, gilt yields rose anew along with global yields last week – reflecting jitters ahead..