The yield on the 10-year UK government gilt touched 4.4% on Thursday, the highest since early November, following a rise in US yields after strong PCE inflation data pushed back expectations for interest rate cuts in the US. The core PCE price index, surged by 3.7% in Q1, accelerating from the 2% increase in the previous quarter and above the estimate of 3.4%. At the same time, lingering concerns of sticky inflation, in addition to a surprisingly strong domestic PMI, pushed back expectations of a first BoE rate cut. Central bank’s Chief Economist Huw Pill, stated that the latest economic news means a first-rate cut could be “some way off”. The developments coincided with the UK Debt Management Office’s announcement that it will sell GBP 12.4 billion more Gilts than originally planned for the 2024-25 fiscal year, more than markets’ expectations, and adding to what was already the second-largest debt issuing package on record.
United Kingdom 10Y Bond Yield was 4.35 percent on Friday April 26, according to over-the-counter interbank yield quotes for this government bond maturity. Historically, the UK 10 Year Gilt Bond Yield reached an all time high of 16.09 in November of 1981. UK 10 Year Gilt Bond Yield - data, forecasts, historical chart - was last updated on April 26 of 2024.
United Kingdom 10Y Bond Yield was 4.35 percent on Friday April 26, according to over-the-counter interbank yield quotes for this government bond maturity. The UK 10 Year Gilt Bond Yield is expected to trade at 3.89 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.65 in 12 months time.