Bonds
UK Gilt Yields Fall as Lower Oil Prices Ease Inflation Concerns

UK 10-year gilt yields fell to 4.99% as declining oil prices eased concerns over inflation and the need for higher interest rates. Crude prices dropped on hopes that the US and Iran could reach an agreement to reopen the Strait of Hormuz after the US canceled planned strikes against Iran. President Donald Trump also said negotiations with Tehran would resume on Monday, reducing fears of further escalation in the conflict. Meanwhile, the Bank of England’s policy meeting last week reinforced expectations that policymakers are in no rush to tighten monetary policy, prompting markets to scale back bets on interest rate hikes in 2026.

