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2026-11-05 16:48:27
[UK gilt yields extended their decline ahead of the Bank of England's decision] The yield on 10-year UK gilts fell further to around 5.1%, the lowest level since the end of August. Brent crude oil prices fell to a two-month low as markets anticipated increasing political pressure on the Trump administration to end the war with Iran following the Democratic Party's landslide victory in the US midterm elections. Market sentiment was also supported by a rotation of funds from technology stocks to other assets, driven by concerns about potential regulatory restrictions on chipmakers. Meanwhile, the market widely expects the Bank of England to raise interest rates for the first time since 2023, as persistent inflationary pressures continue to weigh on the economic outlook. However, policymakers may counter market expectations of further monetary tightening next year. Against this backdrop, expectations for further rate hikes after today's Bank of England meeting have cooled somewhat, with traders no longer fully pricing in four rate hikes by the end of next year.
