It's not just the sterling that's feeling perky, bond yields are on the up too
UK 10-year government bond yields spiked almost 6 bps on the BOE decision, and the fact that they said that they could move to raise rates earlier and at a faster pace saw yields spike up to its highest level since April 2016.
And that's having an impact across the board in bonds as well. German 10-year bund yields touched intra-day highs of 0.768% on the back of that, and US 10-year yields have also touched 2.85% on the day.
If global yields are able to keep heading higher, more worries and concerns will start forming in the equities market - and that is likely to lead to some volatile and interesting times in the market. If the recent volatility in the bond and equities market is a just a small taste of things to come, can you imagine what would happen if we actually have positive global inflation data?
