UK: Inflation is the main source of uncertainty

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Guillermo Felices, Global Investment Strategist at PGIM Fixed IncomeComments on the upcoming meeting Monetary Policy Committees (MPC) The Bank of England (BoE) On June 22:

There was a lot in the press about the weekend Gilt yield rise And this opportunities He declared himself Now offering to investorsFirst The front-end yield is nearly 5.0%. to reach

Although desirable, with these Investing directly in government bonds with attractive yields may be premature.

At the macroeconomic level, the Inflation is the biggest source of uncertainty.

So that’s it for this week Inflation report release on Wednesday And this Bank of England meeting on Thursday from great importance Be.

The key to low income will ultimately be a compelling one Turn in inflation Be. It can Take some timeUntil such a trend emerges.

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With that in mind, we’d like to see Focus on relative value opportunitiesThere are plenty of gilt arches.

Guillermo Felices, PGIM

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