UK Gilt Yield Surges Past 4.8% on BoE’s Hawkish Hold

2026-03-19 12:11 By Joana Ferreira 1 min. read

The UK 10-year gilt yield climbed above 4.8%, reaching its highest level since September 2025 and nearing an over one-year peak, after the Bank of England unanimously voted to hold rates at 3.75%, a more hawkish stance than expected.

Markets had anticipated a 7-2 split in favor of steady rates, but policymakers highlighted concerns over the Middle East conflict’s impact on surging global energy and commodity prices.

The BoE now expects near-term CPI inflation to rise due to the fresh economic shock, reversing prior trends of disinflation in domestic prices and wages.

In response, traders have fully priced in two rate hikes this year, intensifying bets on tighter monetary policy.

On the economic data front, UK jobs data showed slower wage growth and unemployment holding at 5.2%, both missing expectations.



News Stream
UK Gilt Yield Surges Past 4.8% on BoE’s Hawkish Hold
The UK 10-year gilt yield climbed above 4.8%, reaching its highest level since September 2025 and nearing an over one-year peak, after the Bank of England unanimously voted to hold rates at 3.75%, a more hawkish stance than expected. Markets had anticipated a 7-2 split in favor of steady rates, but policymakers highlighted concerns over the Middle East conflict’s impact on surging global energy and commodity prices. The BoE now expects near-term CPI inflation to rise due to the fresh economic shock, reversing prior trends of disinflation in domestic prices and wages. In response, traders have fully priced in two rate hikes this year, intensifying bets on tighter monetary policy. On the economic data front, UK jobs data showed slower wage growth and unemployment holding at 5.2%, both missing expectations.
2026-03-19
UK Gilt Yields Jump as Energy Surge Fuels Inflation Fears
The UK 10-year gilt yield climbed to 4.77%, just shy of last week’s six-month high, as soaring energy costs intensified inflation worries ahead of the Bank of England’s rate decision. A 25% jump in European gas prices, sparked by attacks on Qatar’s LNG facilities, and Brent crude at $117/barrel amplified pressure on the UK economy. While the BoE is expected to hold rates today, markets are pricing in a more hawkish outlook, with 32 basis points of tightening forecast by year-end, equivalent to over a quarter-point hike. Traders now see an over 50% chance of a June rate increase, with a full hike priced in by September. Meanwhile, UK jobs data showed slower wage growth and unemployment holding at 5.2%, both missing expectations.
2026-03-19
UK Gilt Yields Near Six-Month High on Renewed Inflation Concerns
The yield on the UK’s 10-year gilt climbed toward 4.7%, approaching last week’s six-month peak of 4.78%, as soaring energy prices intensified inflation concerns. Oil prices extended their rally on Wednesday after Iran’s Revolutionary Guard issued evacuation warnings for oil facilities in Saudi Arabia, the UAE, and Qatar, following Israel’s strikes on Iran’s Asaluyeh refinery and the South Pars gas field. The sharp rise in energy costs has led traders to price in a nearly 50% probability of a Bank of England interest rate hike by November, a dramatic shift from early March, when markets had anticipated two rate cuts this year. At Thursday’s meeting, analysts will scrutinize the Monetary Policy Committee’s vote split, with a 7-2 or 6-3 decision to hold rates viewed as the most likely outcome.
2026-03-18