BOE’s Bailey: UK market curve rise due to risk premia, not rate hike expectations

Bank of England Governor Andrew Bailey attributed the rise in the UK market curve to risk premia rather than expectations of rate hikes, signaling a stable policy stance. The distinction matters because it suggests long-term yield expectations are being driven by compensation for risk rather than by anticipated tightening, which could shape market strategies. Investors will watch whether risk premia continue to dominate the curve or whether rate expectations reassert themselves.