BOE Inflation Respite Seen Fleeting as Linkers Win

Bonds linked to U.K. inflation are beating all but one of their developed-market peers this year, a sign investors see price increases accelerating from the slowest pace since 2009 as the economy gathers strength.

The securities, known as linkers and designed to insulate holders from fluctuations in the cost of living, returned 4.7 percent this year, compared with a 3.1 percent gain from U.S. Treasuries Inflation Protected Securities, or TIPS, according to Bank of America Merrill Lynch indexes. Similar bonds in the euro region gained 3.5 percent.