Carney-Yellen yield spread shows UK trailing by most since 2006

London

FEDERAL Reserve chair Janet Yellen may have raised US interest rates for the first time in nearly a decade last week, but the Bank of England (BOE) is going nowhere fast.

That's the message from bond markets, where the yield difference between UK and US two-year government securities widened to the most since July 2006 last week. With a Dec 23 report set to confirm Britain's economic growth cooled in the third quarter, forward contracts imply traders don't expect a UK rate increase in 2016.