Liquid Insight: Long-end UKTi to enjoy the sunshine

Research evidence excerpt

Liquid Insight: Long-end UKTi to enjoy the sunshine

Accessible version

Liquid Insight

Long-end UKTi to enjoy the sunshine

Key takeaways 29 June 2026

Rates and Currencies Research• Summer has typically favoured linkers on a real yield basis and August index

Global extensions should help this year.

• We would receive longer-dated forward real yields.

Global Rates & Currencies Research

MLI (UK)

Mark CapletonBy Mark Capleton Rates Strategist

Chart of the day: The 5y5y “real Sonia” summer rally MLI (UK)

2019-2025 average calendar year 5y5y real rate paths, normalized by deducting July 31st reading in each +44 20 7995 6118 mark.capleton@bofa.com

year from all the values for that year, bp.

Oliver Levingston

Average Average excl. 2022 FX and Rates Strategist

75 Merrill Lynch (Hong Kong)

+852 3508 4631

oliver.levingston@bofa.com

See Team Page for List of Analysts

0 Liquid Insight

Recent Publications

-25

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: BofA Global Research, Bloomberg

BofA GLOBAL RESEARCH 25-Jun-26 Second-half revisions in G10

FX

Eurozone linkers aren’t the only likely beneficiaries of 24-Jun-26 AUD: how low can you go?

index events this summer 23-Jun-26 USglobalexceptionalismcurves at play in

Borrowing a methodology we’ve used for the Eurozone in recent weeks, Chart of the day 22-Jun-26 Fed hawkish, stay paid US 2Y

shows how 5y5y “real Sonia” rates have tended to rally through the summer months (as 18-Jun-26 Bearish EUR views from

they have in the Eurozone). Bear in mind also that the summer rally has been against the across the pond

bear market trend over the full period covered. We’re keen to express a related trade this 17-Jun-26 BoE Preview: Ready, steady…

hold.

year because we have some sizeable August linker extensions coming up (Exhibit 1).