One of the downsides of an accelerated tightening cycle by the BOE almost certainly be a stall in the UK housing market. That is the implicit message dealers are taking from comments from MPC member Barker in comments made today on low rates helping fuel the property boom.
With a rise to 6% seen later this year, housing could be in for a rough time after a long bull market. Much has been made of the US housing "bust". It is probably about time to be fretting over the UK. Cable is easing back below 1.9875 support as US yields rise along with their UK counterparts.
30-year bonds have broken through 5% for the first time since January and 10-year notes are at multi-month high yields as well. 1.9850 bids are eyed on further pullbacks.
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