UK 10-Year Gilt Yield Rebounds on Inflation Worries

2026-03-02 08:19 By Joana Ferreira 1 min. read

The UK 10-year gilt yield rose to 4.30%, rebounding from an over one-year low of 4.229% touched on Friday, as escalating tensions in the Middle East unsettled global markets.

Investors have begun trimming their expectations for interest rate cuts by major central banks amid renewed inflation concerns.

Over the weekend, the US and Israel launched strikes on Iran, resulting in the reported death of Iran’s Supreme Leader and the effective closure of the Strait of Hormuz.

In retaliation, Iran carried out missile and drone attacks across parts of the region, further heightening geopolitical uncertainty.

A sharp rise in oil and gas prices has fueled fears of renewed inflationary pressures across Europe.

The region is particularly vulnerable, with gas inventories at unusually low levels and substantial replenishment required ahead of next winter, increasing the risk of sustained energy-driven price pressures.



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