UK Gilts Steady Below 4.9%

2026-06-05 07:47 By Joana Ferreira 1 min. read

UK 10-year gilt yields stayed below 4.9% after oil prices fell and investors adopted a cautious stance, awaiting progress in Middle East peace efforts.

Concerns linger over US-Iran negotiations, particularly Iran’s enriched uranium program and the fragile Lebanon ceasefire, though some investors hope for broader de-escalation in the US-Israeli conflict with Iran.

Domestically, Greater Manchester Mayor Andy Burnham announced his intention to challenge Keir Starmer for the UK prime minister role, the first time he has confirmed such ambitions.

Starmer responded by stating he would not step down.

Burnham’s bid depends on winning the June 18 Makerfield by-election, which would secure him a parliamentary seat and eligibility to contest the leadership.

On monetary policy, markets expect nearly two Bank of England rate hikes this year, with the first likely in September, as policymakers balance rising inflation against early signs of a cooling labor market.



News Stream
UK Gilts Steady Below 4.9%
UK 10-year gilt yields stayed below 4.9% after oil prices fell and investors adopted a cautious stance, awaiting progress in Middle East peace efforts. Concerns linger over US-Iran negotiations, particularly Iran’s enriched uranium program and the fragile Lebanon ceasefire, though some investors hope for broader de-escalation in the US-Israeli conflict with Iran. Domestically, Greater Manchester Mayor Andy Burnham announced his intention to challenge Keir Starmer for the UK prime minister role, the first time he has confirmed such ambitions. Starmer responded by stating he would not step down. Burnham’s bid depends on winning the June 18 Makerfield by-election, which would secure him a parliamentary seat and eligibility to contest the leadership. On monetary policy, markets expect nearly two Bank of England rate hikes this year, with the first likely in September, as policymakers balance rising inflation against early signs of a cooling labor market.
2026-06-05
UK Gilt Yields Slightly Down
UK 10-year gilt yields edged down below 4.9%, following a drop in oil prices and a cautious stance from investors, who are awaiting developments in Middle East peace efforts. Israel and Lebanon reached a ceasefire agreement to halt hostilities, fueling optimism for a wider de-escalation in the US-Israeli conflict with Iran. Yet, Tehran dismissed reports of progress in negotiations with Washington over a temporary peace accord, and clashes persisted in Lebanon. In a rare defiance of President Trump’s administration, the Republican-led US House voted to end military operations against Iran. On monetary policy, markets are pricing in nearly two Bank of England interest rate hikes this year, with the first increase widely expected in September, as policymakers face the dual challenge of curbing rising inflation while addressing early signs of a cooling labor market.
2026-06-04
UK Gilt Yields Fall Amid US-Iran Deal Uncertainty
UK 10-year gilt yields fell to 4.85%, retracing part of Monday’s nine-basis-point rise, as oil prices declined and investors adopted a wait-and-see approach amid uncertainty over Middle East peace efforts. US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu gave differing accounts of a call about the Lebanon conflict, with Trump saying he urged both sides to stop fighting, while Netanyahu’s version was less definitive. This follows reports that Iran paused US talks, demanding an end to Lebanon clashes as part of any deal, though Trump claimed discussions with Iran were advancing quickly. On the monetary policy front, investors are anticipating nearly two Bank of England interest rate increases this year, with the first hike fully priced in for September, as policymakers navigate the dual challenge of rising inflation and a labor market that is showing signs of gradual weakening.
2026-06-02