Attractive bond yields in the United Kingdom 1/3

24 Mar

Attractive bond yields in the United Kingdom 1/3

The UK economy unexpectedly contracted by -0.1% in January, a notable reversal after a positive December. This decline marks the fourth monthly contraction in seven months, signaling a continued trend of economic uncertainty. The drop in manufacturing and construction output was partly due to difficult weather conditions, but these sectors are expected to rebound as conditions improve, potentially providing a temporary boost to the economy.

Key Points

  • Economic weakness continues into 2025
  • Uncertainty does not support the British economy
  • Leading indicators confirm GDP stagnation
  • Labour market still adjusting
  • Household confidence not improving
  • Inflation not yet under control
  • BoE hesitates but will probably cut rates in May
  • The bond market now looks more attractive
  • Towards a period of stabilization for the pound
  • Securitized real estate still awaiting rate cuts
  • FTSE 100 reaches target of 8,800 points