City traders’ interest rate expectations jumped again today, as fears grew that the Bank of England’s attempts to clamp down on inflation are failing.
Short-dated gilt yields continued their relentless march upwards, driven by expectations the Bank of England will raise rates higher and keep them there for longer. The two-year yield hit yet another 15-year high at 5.05% this afternoon, almost a third of a percentage point above the levels reached during the mini-Budget.
