01.08.202513:39:31UTC+00UK 10-Year Gilt Yield Falls Toward 4-Week Low

The yield on the UK 10-year gilt declined to 4.52%, nearing a four-week low, as it tracked reductions in US Treasury yields. This movement reflects traders' increased speculation on additional interest rate cuts by the Federal Reserve following the weak US payrolls report in July. In the UK, there is growing anticipation that the Bank of England will reduce the interest rate by 25 basis points, bringing it to 4% at its forthcoming meeting. Another reduction is anticipated before the year ends, as attention shifts from inflation control towards bolstering a struggling economy. In parallel, geopolitical tensions have escalated following President Trump's announcement of a 10% global base tariff and the implementation of new retaliatory duties of up to 41% on imports from countries without US trade agreements. He also introduced a 40% tariff on goods suspected of being rerouted through intermediary countries to circumvent existing trade restrictions.