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2026-11-02 16:38:28
[UK 10-Year Gill Yields Fall to Six-Week Low] ⑴ The yield on UK 10-year gilts fell further below 5.3%, its lowest level since September 22, as lower oil prices and expectations of a Bank of England policy decision later this week supported the bond market. ⑵ Brent crude fell below $110 a barrel after reports that US President Trump was prepared to give more time to diplomatic efforts with Iran after Tuesday's midterm elections before considering further military action. ⑶ Meanwhile, investors continued to welcome Chancellor John Healy's first budget announced last week, which adhered to the government's self-imposed borrowing rules and largely reassured the market. ⑷ The market widely expects the Bank of England to implement its first interest rate hike since 2023 on Thursday, driven by escalating inflationary pressures related to the Iran conflict and the resilience of the UK economy. ⑸ However, policymakers are also expected to counter market expectations of multiple rate hikes next year.
