Britain's 10-year gilt yield rose 5bps to 0.568% on Friday morning, its highest since August 2, on expectations that US Federal Reserve Jerome Powell will keep the dovish tone from the Fed minutes published on Wednesday. At the same time, the 2-year note yield climbed 4bps to 0.558%, its highest since July 17. Historically, the United Kingdom Government Bond 10Y reached an all time high of 16.09 in November of 1981 and a record low of 0.40 in August of 2019.
The United Kingdom Government Bond 10Y is expected to trade at 0.63 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 0.72 in 12 months time.