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2026-11-04 16:56:31
[UK gilt yields fall] The yield on 10-year UK gilts fell to 5.23% on Wednesday, following a decline in US Treasury yields after a Democratic sweep in the US midterm elections. The Democrats' control of the House of Representatives is seen as reducing the likelihood of further deficit-expanding legislation by the Trump administration, thus easing market concerns about federal borrowing. Meanwhile, investors are preparing for the Bank of England's expected resumption of monetary tightening on Thursday, widely anticipated to be its first rate hike since 2023. Inflationary pressures from the Iran war, coupled with the resilience of the UK economy, have strengthened the case for raising borrowing costs. However, policymakers are expected to counter market expectations of multiple rate hikes next year.
