UK 10-Year Gilt Yield Falls to Lowest Level Since August
The yield on the 10-year UK government bond fell to 5.1%, its lowest level since late August, as a deeper sell-off in oil prices eased inflationary concerns. Brent crude slipped below $95 a barrel after US President Donald Trump downplayed the likelihood of further strikes on Iran, although attacks on vessels near the Strait of Hormuz continued to fuel supply concerns. Investors are also looking ahead to Thursday’s UK third-quarter GDP report, which is expected to show growth of 0.7%, supported by resilient services activity. However, expectations of further Bank of England interest rate hikes continue to underpin elevated gilt yields. Meanwhile, attention is shifting to Tuesday’s US CPI report, which could provide fresh clues about the Federal Reserve’s monetary policy outlook and the potential timing of further rate increases.
The yield on the 10-year UK government bond fell to 5.1%, its lowest level since late August, as a deeper sell-off in oil prices eased inflationary concerns. Brent crude slipped below $95 a barrel after US President Donald Trump downplayed the likelihood of further strikes on Iran, although attacks on vessels near the Strait of Hormuz continued to fuel supply concerns. Investors are also looking ahead to Thursday’s UK third-quarter GDP report, which is expected to show growth of 0.7%, supported by resilient services activity. However, expectations of further Bank of England interest rate hikes continue to underpin elevated gilt yields.
Meanwhile, attention is shifting to Tuesday’s US CPI report, which could provide fresh clues about the Federal Reserve’s monetary policy outlook and the potential timing of further rate increases.