UK bonds signal recession as inflation bedevils Bank of England's response

The UK just got its biggest recession warning since the global financial crisis, yet the Bank of England also got a reminder of how difficult its job might be in responding.

In a so-called yield curve inversion, a typical harbinger of economic contraction, the yield on 10-year government debt fell below the 2-year equivalent on Wednesday for the first time since 2008. A couple of hours earlier, the statistics office reported that inflation unexpectedly accelerated above the BOE’s 2 per cent  target -- and worse could be to come as a plunge in the pound filters through to prices.

The developments reinforce