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15.07.202611:58:50UTC+00UK 10-Year Gilt Yield Near Two-Month High on Rate Hike Bets

The UK 10-year gilt yield inched up to 5%, trading just below the near two‑month high reached on Tuesday. The move came as rising oil prices stoked inflation worries and bolstered expectations of further monetary tightening by the Bank of England.

Brent crude rose to a one‑month high amid mounting tensions in the Middle East. A US blockade of Iranian shipping through the Strait of Hormuz, alongside continued strikes against Iran, has intensified concerns over the reliability of global energy supplies.

Money markets are now fully pricing in a Bank of England rate hike by November, with a second increase anticipated by March 2027.

Investors are also watching UK politics closely ahead of Andy Burnham’s expected appointment as prime minister on 20 July. Market attention has shifted to his choice of finance minister, with betting markets now favouring Foreign Secretary Yvette Cooper over Ed Miliband, who is widely perceived as advocating a more expansionary fiscal approach.

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