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2026-05-25 16:25:10
[UK 10-Year gilt yields fall below 4.9%, hitting a one-month low] ⑴ The yield on UK 10-year gilts fell below 4.9%, hitting its lowest level since April 21, after recording its biggest weekly drop since 2024. Investors were encouraged by progress in US-Iran negotiations and reduced their expectations for a Bank of England rate hike amid weak economic data. ⑵ The US President stated that the memorandum of understanding between the two countries had been "fundamentally completed" and that the Strait of Hormuz would be reopened, causing Brent crude to fall below $100 a barrel. ⑶ Last week's data showed that retail sales fell 1.3% in April, almost double the expected decline, while inflation and labor market data were also weaker than expected. The May Purchasing Managers' Index reading showed the private sector contracting for the first time in a year, reinforcing the shift in interest rate expectations. ⑷ Investors are now awaiting speeches from Bank of England policymakers later this week for signals on monetary policy, as well as political developments surrounding the Prime Minister following Labour's defeat in local elections this month.
