UK Gilt Yield Drops Amid Middle East Conflict Risks

The UK 10-year gilt yield has seen a decline to around 5.0%, following lower US Treasury yields as investors continue to monitor developments in the Middle East.

Despite energy markets starting the week relatively calmly, the risk of a prolonged conflict remains a concern for inflation, with Brent crude still around 45% higher since the start of the year.

The Bank of England's decision to leave interest rates unchanged in July, according to Governor Andrew Bailey, has the disinflation process remaining on track despite external risks.