UK 10-Year Gilt Yield Hits Two-Week High

2026-01-23 10:37 By Joana Ferreira 1 min. read

The UK 10-year gilt yield rose to 4.5%, its highest level since January 5, as traders pared back expectations for Bank of England rate cuts following remarks from policymaker Megan Greene and stronger-than-expected economic data.

Greene noted that a central bank survey suggests the decline in wage growth has run its course and expressed less concern over slowing disinflation, while looser US monetary policy could support higher UK inflation.

Supporting the gilt rally, S&P Global PMI data showed UK private sector activity expanded in January at its fastest pace since April 2024, while retail sales rose 0.4% in December, exceeding expectations.

Consumer confidence also climbed to its highest level since August 2024.

These reports follow earlier data showing a hotter-than-expected headline CPI of 3.4% in December.

Elsewhere, US-Europe trade tensions eased for now after President Donald Trump said he would refrain from imposing tariffs on European goods opposing his Greenland plan.



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