Forex
UK Gilt Yields Plummet on Crude Price Drop, Inflation Fears Ease
UK 10-year gilt yields dropped to 4.99% after crude oil prices declined, easing concerns over inflation and the need for higher interest rates.
The price drop was attributed to hopes that the US and Iran could reach an agreement to reopen the Strait of Hormuz, following the cancellation of planned strikes against Iran by President Donald Trump.
Trump also announced that negotiations with Tehran would resume on Monday, reducing fears of further escalation in the conflict.
The Bank of England's policy meeting last week reinforced expectations that policymakers are not in a hurry to tighten monetary policy, prompting markets to scale back bets on interest rate hikes in 2026.