UK Gilt Yields Decline Amid Interest Rate Cut Anticipation

Yields on United Kingdom’s government bonds, known as gilts, have decreased due to expectations of further interest rate cuts by the Bank of England. This anticipation follows weaker-than-expected retail sales data.

In December, retail sales contracted by 0.3% month-to-month, falling short of the 0.0% consensus forecast from economists in a Wall Street Journal poll.

As a result, both the 10-year and 30-year gilt yields dropped to a 10-day low, according to Tradeweb data. The 10-year gilt yield was last down by 3 basis points at 4.639%, while the 30-year gilt yield decreased around 2 basis points to 5.204%.

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