The downbeat news on the UK economy this week did not stop the 10-year gilt yield rising further to its highest level since November 2015. And with CPI inflation set to climb further, perhaps to a peak of close to 10.0%, and the Bank of England growing more concerned that price expectations could become the-anchored from the 2% inflation target, it is becoming increasingly plausible that interest rates will rise further than the peak of 2.00% forecast by the consensus and the 2.75% peak priced into the financial markets. That suggests gilt yields may be some way from their peak yet.
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