UK 10-Year Gilt Yield Rises to 3-Week High

2025-12-10 09:47 By Agna Gabriel 1 min. read

The UK 10-year gilt yield rose to 4.57%, its highest level in three weeks, as investors pulled back expectations for interest rate cuts and adjusted to a broader global repricing in bond markets.

The move reflects growing caution ahead of upcoming central bank meetings, including the Federal Reserve, and fading confidence that policy easing will extend far into 2026.

Across Europe and the UK, yields are rising as markets scale back bets on easing by the Bank of England, while pricing now implies a roughly 50% chance that the European Central Bank could hike rates by the end of 2026, with no cuts priced in.

There has been little on the domestic UK front to justify such a move, suggesting gilts are being driven largely by global forces.

Recent testimony from BOE officials offered few surprises, and although inflation is cooling, that shift is not yet reflected in market pricing, leaving longer dated yields under pressure.



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