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2025-12-12 21:18:30
[Institutions Bullish Against Market Trend: Best Sovereign Bonds in 2026, Betting on UK Government Bonds?] ⑴ Robert Timper, an analyst at BCA Research, suggests in a report that UK government bonds could be the best-performing sovereign bonds in 2026. ⑵ The core logic is that the Bank of England is expected to further cut interest rates in 2026, which will support bond prices from a policy perspective, thereby lowering their yields. ⑶ The report points out that the improvement in the UK's fiscal situation is another key support. After the budget was announced at the end of November, market concerns about fiscal policy eased, and unlike other major economies, the UK's debt-to-GDP ratio is expected to stabilize. ⑷ Timper concludes that the UK's relatively less worrying fiscal situation compared to other regions, combined with the prospect of interest rate cuts by the central bank, constitutes a positive view on UK government bonds. ⑸ This view aligns with the current market perception of a weak UK economy and the impending interest rate cut cycle by the central bank, but more clearly points out the medium- to long-term (2026) allocation value and relative advantages.
