UK 10-Year Gilt Yield Falls 0.26 Points to 4.9% as Inflation Slows to 2.8%
Updated
Updated · The Guardian · May 22
UK 10-Year Gilt Yield Falls 0.26 Points to 4.9% as Inflation Slows to 2.8%
3 articles · Updated · The Guardian · May 22
The 10-year UK gilt yield is heading for its biggest weekly drop since 2024, down 0.26 percentage points this week to 4.9% as investors scale back Bank of England tightening bets.
April inflation slowed to 2.8%—the lowest in more than a year—after Ofgem’s lower energy cap cut the typical annual dual-fuel bill by £117 to £1,641 and pushed electricity prices down 8.4%.
Broader weak UK data also reinforced the move, with Peel Hunt saying it is increasingly hard to justify further rate hikes when the economy appears to be rapidly losing pressure.
Political risk has eased at the margin as concerns over a possible Labour leadership challenge from Manchester mayor Andy Burnham unwind, adding to support for gilts.
Is the UK's record bond rally a sign of recovery or a fragile bubble about to burst?
Can the Bank of England tame high inflation without crashing the volatile UK bond market?
The UK's debt depends on foreign investors. What could trigger their sudden exit?