UK 10-year gilt yields rise to 2-month high after US Fed hold
Ten-year British government bond yields rose to their highest since November 20 on Thursday, tracking a modest upward move in U.S. Treasury yields after the Federal Reserve kept interest rates unchanged on Wednesday.
By Reuters |
Ten-year British government bond yields rose to their highest since November 20 on Thursday, tracking a modest upward move in U.S. Treasury yields after the Federal Reserve kept interest rates unchanged on Wednesday.
Ten-year gilt yields rose 2 basis points on the day to peak at 4.569% at 0831 GMT.
The U.S. Fed left interest rates alone, as widely expected, and Chair Jerome Powell talked about a "clearly improving" economic outlook and broad support on the committee for a pause.
Economists polled by the Reuters expect the Bank of England to keep interest rates on hold at 3.75% on February 5 after its next meeting, while LSEG rate futures show a quarter-point rate cut is not fully priced in until July.
Only around 33 bps of BoE rate cuts are priced in for 2026 as a whole, around 1 bp less than on Wednesday.
Ten-year gilt yields rose 2 basis points on the day to peak at 4.569% at 0831 GMT.
The U.S. Fed left interest rates alone, as widely expected, and Chair Jerome Powell talked about a "clearly improving" economic outlook and broad support on the committee for a pause.
Economists polled by the Reuters expect the Bank of England to keep interest rates on hold at 3.75% on February 5 after its next meeting, while LSEG rate futures show a quarter-point rate cut is not fully priced in until July.
Only around 33 bps of BoE rate cuts are priced in for 2026 as a whole, around 1 bp less than on Wednesday.
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