The yield on the UK's 10-year Gilt retraced towards the 4.4% threshold, hovering around its lowest level since August 10, as weaker-than-anticipated US private employment figures and second-quarter GDP results fostered optimism that the Federal Reserve could soon conclude its policy tightening efforts. Concurrently, the enduring inflationary pressures within Europe's major economies indicated that the ECB might proceed with additional interest rate hikes this year. In the preceding week, Fed Chief Powell underscored the potential necessity for the central bank to implement further interest rate hikes as a means to curb inflation. Simultaneously, Bank of England Deputy Governor Ben Broadbent noted that sustained elevated interest rates might be required in the UK over an extended period to address persistent inflation pressures.
Historically, the United Kingdom Government Bond 10Y reached an all time high of 16.09 in November of 1981. United Kingdom Government Bond 10Y - data, forecasts, historical chart - was last updated on August of 2023.
The United Kingdom Government Bond 10Y is expected to trade at 4.59 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.08 in 12 months time.