Fixed Income  

Bond investors warned of ‘lethal combination’ 

“If the UK continues doing QE next year, as is still likely, then the Bank of England would be buying most of the extra gilt issuance,” Mr Riddell said.

He said markets are now pricing in a big change, which is why there has been a big sell-off in recent weeks, which is one reason why he is getting more bullish on bonds at these levels.

Mr Riddell also said the gilt sell-off was partly driven by the naming of a date for when Article 50 would be triggered and talks of a ‘hard Brexit’, which he said reconfirmed that the UK would actually leave the European Union.