Well the BoE sounded a bit hawkish.

We previewed the decision on Sunday and I mean, I haven’t had a chance to really look at the chatter, but the rhetoric here sounds pretty aggressive versus consensus headed in.

Of course, there was no change to policy, but the forward guidance is tipping (another) hike and probably sooner than the market was figuring. They upped their growth forecasts and more importantly, suggested they might just “need” to raise interest rates faster than previously suggested.

Here’s GBP/USD:

This “will encourage expectations for a May rate hike and strengthen the pound,” MUFG’s Lee Hardman told Bloomberg adding that “the BOE sent a clear signal that rates may need to rise earlier and more than previously planned.”

• U.K. MONEY MARKETS PRICING 25 BPS BOE RATE HIKE IN AUGUST

Obviously, UK yields are rising. Here’s 10Y yields:

And 2Y yields:

So you know, make of that what you will, but do note that it’s yet another hawkish shift and it’s driving yields higher and we’re in the middle of a DM bond rout.

Also, you know what that pound strength could mean for UK equities, right?…