2026.07.0208:33:55UTC+00Gilt Yields Follow US Treasuries Higher Before Jobs Data

UK 10-year gilt yields climbed to 4.8%, a one-week high, tracking a rise in US Treasury yields as investors looked ahead to US employment data due later in the day. Markets also weighed comments from central bankers at the ECB’s Sintra Forum. Bank of England Governor Andrew Bailey struck a dovish tone, pointing to signs of a weakening UK economy, but reiterated that rate cuts are unlikely in the near term given persistent inflation risks. Meanwhile, Fed Chair Kevin Warsh observed that inflation expectations have eased recently, while underscoring the Fed’s firm commitment to its 2% inflation target. Political developments in the UK are not expected to have a material impact on sterling before late July, when Andy Burnham is set to take office as Prime Minister. In geopolitics, markets reacted positively to progress in indirect US–Iran talks, with Qatar expected to schedule the next round of meetings shortly, and oil prices extended their decline as more shipments passed through the Strait of Hormuz.