LONDON (Reuters), Investors have retracted their hopes of a Bank of England interest-rate hike in December. This was after a South Africa coronavirus variant, which is more challenging to eradicate with vaccines, was discovered.

Futures on interest rates were pricing in a 55% chance that the BoE would raise its rate by 15 basis points on December 16th, after it next scheduled meeting on monetary policy. This compares with an approximately 75% chance for Thursday.

Huw Pill is the BoE’s chief economist. He said that he believes the path to a rate increase was open since the outbreak of the coronavirus epidemic. However, he refused to give any signals about the likely timing of such a move and said there were still dangers to public health.

Yields for 10-year British bonds plunged 15 basis points. They were experiencing their worst one-day decline since March 2020 when the financial crisis began.

The yields of two-year, five-year, twenty-year, and 30-year gilts declined by 12 to 13 basis points.

British’s 10-year, inflation-linked gilt yield fell to an all-time low of -3.347%.