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(Bloomberg) -- Below is an edited transcript of coverage of markets dealing with surging bets for Bank of England rate hikes on Thursday, July 7. 13:37 UK 10-Year Gilt Yields Hit Highest Since 2008 And there we have it, 10-year gilt yields have risen to the highest level since 2008. 08:10 UK Stocks Drop, 10-Year Gilt Yield Exceeds Truss-era Levels It's a very negative open for UK assets. [Extracted from the article]

Read More: Hunt Rules Out UK Tax Cuts While Touting Post-Brexit Potential 9:49 a.m. Bestway is one of the largest family-owned business in the UK with a turnover of about £4.5 billion 8:25 a.m. Pound, FTSE 100 Fall UK markets are fully open now and its been a donwbeat start to the day for most asset groups. [Extracted from the article]

(Bloomberg) -- 10:48 a.m. Hunt has been speaking on Bloomberg TV after his speech. Bestway is one of the largest family-owned business in the UK with a turnover of about £4.5 billion 8:25 a.m. Pound, FTSE 100 Fall UK markets are fully open now and its been a donwbeat start to the day for most asset groups. Read More: Hunt Rules Out UK Tax Cuts While Touting Post-Brexit Potential 9:49 a.m. [Extracted from the article]

(Bloomberg) -- 9:13 a.m. Let's dig more into expectations for Chancellor Hunt's speech at Bloomberg's European headquarters in London, which is due in about 15 minutes. Bestway is one of the largest family-owned business in the UK with a turnover of about £4.5 billion 8:25 a.m. Pound, FTSE 100 Fall UK markets are fully open now and its been a donwbeat start to the day for most asset groups. Opposing what he called a narrative of "declinism" about Britain, Hunt will argue that Brexit can be a "catalyst" for prosperity, insisting: "Our plan for growth is a plan built on freedoms which Brexit provides.". [Extracted from the article]

That poll is the latest in a strong of downbeat reports on confidence, which seem to be painting a far bleaker picture of the UK economy than hard data or company earnings. Yet the current environment could prove more challenging than usual for CFOs, whose average age is 52 among FTSE 100 companies. [Extracted from the article]

Read More: UK Business Confidence Drops to Lowest Since Financial Crisis 7:23 a.m. Here's what's on the agenda today. That poll is the latest in a strong of downbeat reports on confidence, which seem to be painting a far bleaker picture of the UK economy than hard data or company earnings. [Extracted from the article]

As it considers an economy under pressure from industrial action, the Bank of England has narrowly avoided a strike headache of its own, after agreeing to a 3.5% pay rise for its 4,200 staff and a one-off 1% salary top-up this year. While investors still expect a half-point hike to 4% from the BOE next month -- and the rate peaking around 4.5% in the summer -- they are already pricing in the prospect of rate cuts later in the year amid speculation officials may need to act to shore up a flagging economy. [Extracted from the article]

The report, covering November and December, showed fuel and raw material costs are rising at their slowest pace in almost a year, providing further evidence that pipeline inflationary pressures are easing. EasyJet said strong bookings continued into the second quarter and the crucial summer months and expects to beat the current market profit expectations for the full year, while the pub chain said like-for-like sales in the last 12 weeks were 17.8% higher a year ago. [Extracted from the article]

One key driver of the UK government's soaring debt costs is the fact that about a quarter of all UK government bonds are linked to the retail price index of inflation, which has surged to its highest level in decades. Read more: UK Deficit Soars to Record as Inflation Boosts Debt Payments (Adds latest post.). [Extracted from the article]

Professionals have been looking for new jobs with higher salaries and a better work-life balance, and the study found that there was a 21% average salary change moving from one job to another in the fourth quarter. City of London Workers Pause Job Hunt (10:37 a.m.) Finance workers in the City of London are putting their job hunts on hold and instead opting to wait for their bonuses to figure out their next move. Pound's Good Morning Comes to an End (11:29 a.m.) (Bloomberg) -- The pound's good start to the week has come to an abrupt end, with the currency falling well below $1.24 and seeing even bigger losses against the euro. [Extracted from the article]

The Office of National Statistics have just reported that UK retail sales unexpectedly dropped in December, completing the worst year on record. Read More: UK Retail Sales Had Worst Year on Record in Spending Squeeze Pound falls after retail data (7:30 a.m.) The disappointing sales numbers have taken their toll on the pound, which has fallen to its lowest levels of the day. [Extracted from the article]

(Bloomberg) -- Money markets now see the Federal Reserve's key overnight rate peaking at 4% by the middle of next year, as expectations for policy tightening ramp up. Pricing for the US central bank's so-called terminal rate comes as traders bet on nearly 200 basis points of rate increases at the next three Fed rate decisions, with a 50% chance of a three-quarter point hike coming as soon as this week. [Extracted from the article]

(Bloomberg) -- Money markets now see the Federal Reserve terminal rate at 4% for the first time, and are pricing for it to get there by the middle of next year. The recalibration in market expectations comes as Wall Street weighs the possibility of the Fed gearing up for even greater rate hikes than the half-point increase it's set to deliver at a policy decision this week. [Extracted from the article]

"The high inflation print has put a dent to the peak inflation (and peak Fed hawkishness narrative)", Mohit Kumar, an interest rate strategist at Jefferies International Ltd, wrote in a note to clients on Monday. Money markets are pricing 175 basis points by its September decision, implying two half-point and one 75 basis points hike, according to interest rate swaps tied to FOMC policy outcome dates. [Extracted from the article]

(Bloomberg) -- Traders see 50-50 odds of the Federal Reserve raising rates by three-quarters of a percentage point in July, while economists at Barclays Plc and Jefferies LLC say this move could come as early as next week. The ramp-up in Fed rate expectations comes after a Labor Department report showed consumer prices accelerating to a fresh 40-year high, though Fed watchers doubt Chair Jerome Powell would take that step. [Extracted from the article]

(Bloomberg) -- Traders are now fully pricing three half-point Federal Reserve rate hikes in coming months, while the 30-year Treasury yield fell below its five-year counterpart for the first time in a month. Money markets see a 50-basis-point increase in June, July and September, Fed swaps show. [Extracted from the article]

Money markets see a 50-basis-point increase in June, July and September, Fed swaps show. (Bloomberg) -- Traders are now fully pricing three half-point Federal Reserve rate hikes in coming months after US inflation data came in faster than expected. [Extracted from the article]

That's piling pressure on the Bank of England to support growth and rein in the highest inflation in four decades, while keeping pace with the Federal Reserve and other global peers -- a process pound traders will be watching very closely. A sigh of relief for UK investors after Boris Johnson's leadership victory is proving temporary, as focus sharpens on the nation's worsening economy. "Stay Aggressive" With the BOE convening on June 16 -- a day after the Fed is expected to deliver a half-point rate hike -- traders will be watching for just how much the central bank will tighten. [Extracted from the article]

(Bloomberg) -- The dollar slid versus haven counterparts including Japan's yen as stock declines drove investors into the safest assets. Yields on U.S. Treasuries from two to 10 years slumped more than 10 basis points. [Extracted from the article]

(Bloomberg) -- After another wild week in global money markets, traders are betting big on the biggest regime shift in Europe in years: the end of the negative interest-rate era before 2022 is over. Louis Harreau, rates strategist at Credit Agricole SA, expects the war to trigger a recession in the region deep enough for the ECB to delay the first quarter-point hike until December. "So if the ECB is to let the idea float of a July rate hike being alive, that gives markets a license to price closer to 100 basis points of hikes by December.". [Extracted from the article]

(Bloomberg) -- JPMorgan Chase & Co. and Bank of New York Mellon Corp. processed a payment transaction from Russia for one of its dollar bonds, allowing the nation to continue sidestepping a default. JPMorgan acted as a correspondent bank in transactions for Russian debt due in 2030 and processed a payment amounting to nearly $447 million on Thursday, which covers an $87.5 million coupon payment and a $359 million principal payment, according to a person familiar with the matter. [Extracted from the article]

JPMorgan acted as a correspondent bank in transactions for Russian debt due in 2030 and processed a payment amounting to nearly $447 million on Thursday, which covers an $87.5 million coupon payment and a $359 million principal payment, according to a person familiar with the matter. (Bloomberg) -- JPMorgan Chase & Co. helped process a payment transaction from Russia for one of its dollar bonds, allowing the nation to continue sidestepping a default. [Extracted from the article]

It continues to service its foreign bonds after sanctions over the invasion of Ukraine severed Russia from the global financial system. (Bloomberg) -- Russia bought back the bulk of a $2 billion dollar bond using rubles, a step that ensures local investors aren't affected by payment restrictions after the country was hit by sanctions for the invasion of Ukraine. [Extracted from the article]

Russia's Bond Buyback in Rubles Aims at Ensuring Locals Get Paid ©2022 Bloomberg L.P. (Bloomberg) -- Russia has bought back the bulk of a $2 billion eurobond using rubles -- a step that ensures local investors dodge payment restrictions. [Extracted from the article]

(Bloomberg) -- JPMorgan Chase & Co. processed a coupon payment from Russia for one of its dollar bonds, allowing the nation to continue sidestepping a default. JPMorgan, which is listed as a paying agent on the prospectus for Russia's debt due in 2030, processed a payment amounting to nearly $447 million on Thursday, according to a person familiar with the matter. [Extracted from the article]

JPMorgan, which is listed as a paying agent on the prospectus for Russia's debt due in 2030, processed an $87.5 million coupon payment due on Thursday, according to a person familiar with the matter. (Bloomberg) -- JPMorgan Chase & Co. processed a coupon payment from Russia for one of its dollar-denominated eurobonds, allowing the nation to continue sidestepping a default. [Extracted from the article]

(Bloomberg) -- A gauge of U.S. Treasuries is hurtling toward the biggest quarterly loss on record, as traders bet on hefty Federal Reserve rate increases and the possibility of a cease-fire between Russia and Ukraine. Treasury Yields Show Fed's Final Rate a Key to Depth of Rout Five-year yields rose above 30-year yields on Monday -- for the first time since 2006 -- signaling to some investors that the wave of policy tightening could end up causing a recession. [Extracted from the article]

(Bloomberg) -- Russia is making coupon and principal payments for bonds due next month and in April 2042, according to filings with the National Settlement Depository. The latest hurdle came at the end of last week when Clearstream, the Luxembourg-based bank that settles payments for some of the nation's bonds, blocked the NSD's account. [Extracted from the article]

(Bloomberg) -- Russia signaled its intention to make coupon and principal payments for bonds due next month and in April 2042, according to filings with the National Settlement Depository. The nation filed notifications for "interest payment" and "principal repayment" on $2 billion of dollar-denominated debt maturing on April 4. [Extracted from the article]

(Bloomberg) -- Treasuries sold off across the board Tuesday, extending moves from the previous day and sending short-dated debt hurtling toward its worst quarterly performance in almost four decades after Federal Reserve Chair Jerome Powell's aggressive monetary policy comments revived the prospect of a bumper half-point rate hike. The moves come after Powell struck a hawkish tone on Monday, prompting traders to rapidly ratchet up estimates for how aggressively the Fed will tighten monetary policy this year. [Extracted from the article]

(Bloomberg) -- Short-dated Treasuries hurtled toward their worst quarterly performance in almost four decades after Federal Reserve Chair Jerome Powell's aggressive monetary policy comments revived the prospect of a bumper half-point rate hike. The moves come after Powell struck a hawkish tone on Monday, prompting traders to rapidly ratchet up estimates for how aggressively the Fed will tighten monetary policy this year. [Extracted from the article]

Sterling slid to as low as $1.3156, a level not seen since before the U.K. completed its divorce from the European Union. (Bloomberg) -- The pound slumped to the lowest since December 2020 as traders flocked to the U.S. dollar amid an escalation in the Ukraine war. [Extracted from the article]

"The Bank of Russia has neither Treasuries to repo with the new FIMA repo facility, nor dollar swap lines with the Fed, and if its assets are frozen, it can't raise dollars to provide for its domestic banks." (Bloomberg) -- Russia's bonds resumed declines as fresh sanctions on the nation's central bank and a downgrade of its credit rating to junk sent investors rushing for safety. [Extracted from the article]

(Bloomberg) -- Russia's bonds resumed declines as fresh sanctions on the nation's central bank and a downgrade of its credit rating to junk sent investors rushing for safety. Russia has amassed record surpluses, as well as a war chest that includes gold reserves and liquid wealth of about $1 trillion, according to estimates by Credit Suisse Group AG strategist Zoltan Pozsar. [Extracted from the article]

(Bloomberg) -- Holders of bonds issued by Russia are set to grapple with a new reality this week as fresh sanctions on the nation's central bank and a downgrade of its credit rating to junk threaten to dry up access to sovereign debt funding. "Investment Pariah" Russia has become "an investment pariah", said Timothy Ash, strategist at BlueBay Asset Management, which slashed its Russian debt holdings before the Ukraine invasion. [Extracted from the article]