📝U.K. Two-Year Gilt Seen Rising To 1.9% By Year-End: BofA

U.K. two-year borrowing costs are likely to rise further as the Bank of England lifts interest rates beyond their current1% level, reaching 1.9% by year-end. This forecasts aligns with BofA's expectations for the BOE's Bank rate to reach 2% or higher by year-end, with the market anticipating further increases beyond that. The rise in gilt yields of all maturities indicates a meaningful gilt cheapening versus Sterling Overnight Index Average (SONIA) swaps. - BofA