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Chart of the Day: UK-US yield divergence

Chart courtesy - bondvigilantes.com

Despite a sharp rise in inflation in the United Kingdom and warning from Bank of England (BoE) governor Marke Carney that the next move in the interest rate could be on the either side, speculators are bracing for a faster rate hike from the United States.

Given the uncertainties surrounding Brexit, traders are right to do so.

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