UK Gilt Yields Ease After BoE Holds Rates

2026-04-30 11:10 By Joana Ferreira 1 min. read

UK 10-year gilt yields fell to 5% after the Bank of England kept its Bank Rate unchanged at 3.75% by an 8-1 majority, as expected.

The BoE stated that rates are at a "reasonable place" and maintained its guidance that it "stands ready to act as necessary" to ensure CPI inflation meets the 2% target in the medium term.

It also warned of a material risk of second-round inflation effects, and that it will "continue to monitor closely" the Middle East situation and its impact on global energy supply and prices.

This follows the Federal Reserve’s decision to hold rates steady, though its meeting exposed deepening divisions, with four officials dissenting for the first time since October 1992, three of whom opposed the Fed’s signal of eventual rate cuts.

Meanwhile, Brent crude erased early gains, easing some inflation concerns.

UK bonds faced another tough month in April, with benchmark 10-year yields rising nearly 15 basis points to above 5%, though the spike was less severe than in March.



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UK Gilt Yields Ease After BoE Holds Rates
UK 10-year gilt yields fell to 5% after the Bank of England kept its Bank Rate unchanged at 3.75% by an 8-1 majority, as expected. The BoE stated that rates are at a "reasonable place" and maintained its guidance that it "stands ready to act as necessary" to ensure CPI inflation meets the 2% target in the medium term. It also warned of a material risk of second-round inflation effects, and that it will "continue to monitor closely" the Middle East situation and its impact on global energy supply and prices. This follows the Federal Reserve’s decision to hold rates steady, though its meeting exposed deepening divisions, with four officials dissenting for the first time since October 1992, three of whom opposed the Fed’s signal of eventual rate cuts. Meanwhile, Brent crude erased early gains, easing some inflation concerns. UK bonds faced another tough month in April, with benchmark 10-year yields rising nearly 15 basis points to above 5%, though the spike was less severe than in March.
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