UK Gilt Yields Hold Near Recent Lows as Oil Prices Ease
UK 10-year gilt yields stabilized around 5.23%, close to their lowest level since September 8, as a recent decline in oil prices supported the broader market. Brent crude extended its recent slide amid reports that Saudi Arabia was preparing to restart a key pipeline and that the US had made progress in talks with Iran, despite President Trump’s earlier threat against Iran at the UN General Assembly. The move in oil prices, however, did little to ease expectations for Bank of England tightening, with markets still pricing a solid chance of a 25bp rate hike in November. Meanwhile, preliminary September PMI data showed continued UK business expansion, although growth slowed slightly and came in below expectations. Services firms cited weak domestic demand and geopolitical uncertainty as headwinds, while manufacturing activity was boosted by AI investment and higher defense spending. In the US, hawkish comments from Fed policymakers strengthened expectations of further rate hikes.
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23%, close to their lowest level since September 8, as a recent decline in oil prices supported the broader market. Brent crude extended its recent slide amid reports that Saudi Arabia was preparing to restart a key pipeline and that the US had made progress in talks with Iran, despite President Trump’s earlier threat against Iran at the UN General Assembly. The move in oil prices, however, did little to ease expectations for Bank of England tightening, with markets still pricing a solid chance of a 25bp rate hike in November. Meanwhile, preliminary September PMI data showed continued UK business expansion, although growth slowed slightly and came in below expectations.
Services firms cited weak domestic demand and geopolitical uncertainty as headwinds, while manufacturing activity was boosted by AI investment and higher defense spending. In the US, hawkish comments from Fed policymakers strengthened expectations of further rate hikes.