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Analysis: Sterling to spoil any boost to bonds from Brexit deal doubts

Reuters  |  LONDON 

By Saikat Chatterjee and Tommy WilkesLONDON (Reuters) - Investors in short-dated sterling bonds could be the main winners if Britain and the European Union fail to hammer out the contours of a Brexit transition deal at a summit starting on March 22.For foreign holders of UK debt, though, the risks of a slide in sterling because of stalled Brexit talks could outweigh any fixed-income gains, especially as some investors also view the pound as overvalued and vulnerable to a rise in protectionism.At the start of January, bets on a UK rate rise in May were close to zero but futures markets are now ...

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First Published: Tue, March 13 2018. 21:30 IST