James Hirai

One trader has placed a contrarian bet that the Bank of England will cut interest rates aggressively this year, even as concern about sticky inflation and the budget deficit send UK bond yields soaring.

UK assets have suffered a horrendous start to the new year as investors fret about the country’s finances, reigniting memories of a market crisis in 2022 that brought down former Prime Minister Liz Truss.

(Bloomberg) -- UK assets have suffered a horrendous start to the new year as investors fret about the country's finances, reigniting memories of a market crisis in 2022 that brought down former Prime Minister Liz Truss.

The UK is set to get an indication of investor appetite for gilts, with its first bond sale since turmoil gripped the market last week.

The European Union is selling short- and long-maturity bonds through banks on Tuesday as it takes the first steps toward raising €90 billion ($95 billion) in the first half of the year.

The UK is set to get an indication of investor appetite for gilts, with its first bond sale since turmoil gripped the market last week.

The embattled UK government will struggle to wrestle back the confidence of investors, with gilts and the pound set to extend their recent losses, according to the latest Bloomberg Markets Live Pulse

(Bloomberg) -- The embattled UK government will struggle to wrestle back the confidence of investors, with gilts and the pound set to extend their recent losses, according to the latest Bloomberg Markets Live Pulse survey.Most Read from BloombergThese Homes Withstood the LA Fires. Architects Explain WhyNYC Commuters Get New Way to Dodge Traffic: $95 Helicopter RidesWill Americans Ever Lose Their Taste for Telework?Scaramucci, Ackman Donate to Whitney Tilson’s NYC Mayoral RunChicago Agency Pitche

The UK is offering bonds due in 2040 through banks on Tuesday, seeking to build on the success of its previous sale and a recovery in demand after a selloff earlier this month.

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