UK 10 Year Gilt Bond Yield
The yield on the UK 10-year gilt fell to around 4.10%, its lowest in two weeks, after lower-than-expected inflation data strengthened the case for further Bank of England interest rate cuts.
UK inflation dropped to 1.7% in September, down from 2.2% in August and below the 1.9% forecast.
This marks the first time in over three years that inflation is below the Bank of England’s 2% target.With inflation easing and wage growth slowing, Bank of England Governor Andrew Bailey has indicated that more aggressive rate cuts are likely.
The favorable conditions could lead to another rate cut in early November, with the potential for another in Decembe. (Cay)
Source: Trading Economi