UK gilt yields retreat from multi-decade highs as political drama mellows, rate hike expectations ease
UK government bond yields have decreased as political tensions ease and expectations for interest rate hikes diminish. The benchmark 10-year gilt yield fell to 4.85%, marking a significant drop from recent highs. Political uncertainty remains as Prime Minister Keir Starmer faces leadership challenges from within his party.
- ▪Yields on U.K. government bonds fell to five-week lows on Tuesday.
- ▪The yield on the benchmark 10-year bond stood at 4.85%, having eased by around 30 basis points.
- ▪Starmer faces potential leadership challenges from several colleagues, including Wes Streeting and Angela Rayner.
Opening excerpt (first ~120 words) tap to expand
Yields on U.K. government bonds fell to five-week lows on Tuesday as investor concerns about political developments eased and optimism for a U.S.-Iran peace deal helped scale back expectations for interest rate hikes. The yield on the benchmark 10-year bond, or gilt, stood at 4.85% on Tuesday, having eased by around 30 basis points in a relief rally on Friday. The interest rate on the 30-year gilt also fell over 30 basis points last week and continued easing on Tuesday to 5.552%. Yields spiked to multi-decade highs in recent weeks after a set of disastrous nationwide local election results for the governing Labour Party put Prime Minister Keir Starmer's premiership under pressure.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
