26.01.202611:55:57UTC+00UK 10-Year Gilt Yield Falls Below 4.5%

On Monday, the yield on the UK's 10-year gilt decreased to below 4.5%. This movement occurred in the backdrop of ongoing geopolitical tensions, reduced political uncertainty within the UK, and markets anticipating the forthcoming Federal Reserve policy announcement. Internationally, U.S. President Donald Trump initially threatened several European countries with new tariffs related to Greenland. However, he reversed this stance following a framework agreement. Additionally, Trump cautioned that the U.S. might impose 100% tariffs on Canada should it engage in a trade agreement with China.

In domestic political developments, the UK Labour Party prevented Andy Burnham from running for a parliamentary seat, thereby obstructing a potential challenge for leadership and premiership ambitions. Investors now turn their attention to the Federal Reserve meeting on Wednesday. It is largely expected that the interest rates will be maintained, amid speculation surrounding the potential appointment of a more dovish successor to Jerome Powell as the Fed Chair this week.