UK Gilt Yield Trim Gains on Weak US Jobs Data

2026-07-02 13:52 By Joana Ferreira 1 min. read

UK 10-year gilt yields gave up early gains to fall below 2.8% as weaker-than-expected US jobs data prompted investors to scale back expectations for further Federal Reserve rate hikes.

The US economy added just 57,000 jobs last month, well below forecasts, while the unemployment rate unexpectedly fell to 4.2% as many people left the labor force.

Investors also assessed remarks from central bankers at the ECB's Sintra Forum.

Bank of England Governor Andrew Bailey maintained a dovish tone, pointing to a slowing UK economy while stressing that persistent inflation risks rule out near-term rate cuts.

Meanwhile, Fed Chair Kevin Warsh said inflation expectations had eased in recent weeks but reaffirmed the Fed's commitment to returning inflation to its 2% target.

Elsewhere, improving prospects for indirect US-Iran talks, with Qatar expected to schedule the next round soon, helped push oil prices lower as shipping through the Strait of Hormuz remained largely uninterrupted.



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UK Gilt Yield Trim Gains on Weak US Jobs Data
UK 10-year gilt yields gave up early gains to fall below 2.8% as weaker-than-expected US jobs data prompted investors to scale back expectations for further Federal Reserve rate hikes. The US economy added just 57,000 jobs last month, well below forecasts, while the unemployment rate unexpectedly fell to 4.2% as many people left the labor force. Investors also assessed remarks from central bankers at the ECB's Sintra Forum. Bank of England Governor Andrew Bailey maintained a dovish tone, pointing to a slowing UK economy while stressing that persistent inflation risks rule out near-term rate cuts. Meanwhile, Fed Chair Kevin Warsh said inflation expectations had eased in recent weeks but reaffirmed the Fed's commitment to returning inflation to its 2% target. Elsewhere, improving prospects for indirect US-Iran talks, with Qatar expected to schedule the next round soon, helped push oil prices lower as shipping through the Strait of Hormuz remained largely uninterrupted.
2026-07-02
Gilt Yields Follow US Treasuries Higher Before Jobs Data
UK 10-year gilt yields rose to 4.8%, hitting a one-week high as they followed US Treasury yields higher, with investors awaiting US jobs data later in the day. Markets also digested remarks from central bankers at the ECB’s Sintra Forum. Bank of England Governor Andrew Bailey maintained a dovish tone, citing a softening UK economy but ruling out near-term rate cuts due to lingering inflation risks. Meanwhile, Fed Chair Kevin Warsh noted that inflation expectations have eased recently, though he reaffirmed the Fed’s commitment to its 2% target. UK political shifts are unlikely to impact sterling until late July, when Andy Burnham is expected to take office as Prime Minister. Elsewhere, markets welcomed progress in indirect US-Iran talks, with Qatar set to schedule the next meeting soon, while oil prices continued to decline as more shipments moved through the Strait of Hormuz.
2026-07-02
UK Gilt Yields Climb as Investors Digest Central Bank Commentary
UK 10-year gilt yields rose to 4.8%, extending gains from last week’s two-month lows, as investors parsed remarks from global central bankers at the ECB’s Sintra Forum. Bank of England Governor Andrew Bailey reiterated his dovish stance, telling CNBC that UK policymakers see a softening economy and that May’s rate hold at 3.75% reflected this view. He ruled out near-term cuts, citing persistent inflation risks, though he noted encouragement from falling energy prices. Bailey also stressed the BoE won’t rush to react to rising oil prices, as inflation remains on track to hit 2%, albeit later than hoped. Gilt yields also tracked US Treasuries higher after Fed Chair Kevin Warsh offered no new rate guidance, while investors bet on further Fed hikes this year amid solid labor data. Elsewhere, bond markets weighed the odds of Ed Miliband becoming Chancellor over Wes Streeting, with fiscal concerns easing after Andy Burnham, the PM frontrunner, pledged fiscal discipline.
2026-07-01