The Bank of England is expected to announce a one-year slowdown in quantitative
tightening (QT) starting in October. QT refers to reducing the BoE's gilt
holdings accumulated during QE. Analysts estimate the pace could be cut from
about £70bln a year to roughly £50bln a year. XTB's Kathleen Brooks said the
change is unlikely to sharply lower yields but could ease some upward pressure.
The 10-year gilt yield hit a 19-year high of 5.439% this week amid inflation
concerns and rising global government yields; it last traded at 5.292%.
