Small font size A Larger text size A Largest text size A

Pound and bond yields slide after BoE cuts rates

BY Reuters | ECONOMIC | 02/06/25 07:12 AM EST

Feb 6 (Reuters) - The pound was set for its biggest one-day fall since early January on Thursday after the Bank of England cut interest rates as expected, with two officials calling for an even larger rate cut against a backdrop of weaker growth.

Sterling extended its fall, down about 1% at $1.2373 from $1.2421 before the decision, heading for its largest daily slide since January 2 and down from a four-week high the day before.

Britain's 10-year government bond yield also fell and was last down 5 basis points at 4.385%, from 4.42% before the decision.

The BoE lowered rates to 4.50%.

The UK's FTSE 100 was last up at 1.12% having traded around 1.15% higher before the BoE's announcement, while the mid-cap index rose as much as 1.7% on the day. (Reporting by Greta Rosen Fondahn; Editing by Amanda Cooper)

More Fixed Income News

Ray Dalio Has A Chilling Warning For President Trump: Debt Crisis Is Imminent, And An Issue Of 'Paramount Importance' BY Benzinga |ECONOMIC 03/15/25 12:01 AM EDT
Fitch affirms Poland at 'A-' with outlook stable BY Reuters |CORPORATE 03/14/25 07:13 PM EDT
Federal Reserve Board Approves the Acquisition of Sterling Bank and Trust, F.S.B. by EverBank Financial Corp BY Business Wire |ECONOMIC 03/14/25 06:52 PM EDT
CANADA FX DEBT-Canadian dollar posts weekly gain as equities rebound BY Reuters |ECONOMIC 03/14/25 05:06 PM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article