UK Gilt Yields Remain High Amid Rate Hike Bets

2026-09-24 10:40 By Joana Ferreira 1 min. read

UK 10-year gilt yields were little changed around 5.35%, remaining close to the 19-year highs reached earlier this month, as elevated oil prices and comments from Bank of England policymakers kept monetary policy in focus.

Brent extended its recent gains as heightened Middle East tensions clouded prospects for a diplomatic resolution to the US-Iran war.

BoE Deputy Governor Clare Lombardelli said rates may need to rise if energy prices remain elevated, unless there is clear evidence of a weaker economy.

Meanwhile, MPC member Swati Dhingra said inflation expectations were not yet a source of concern.

The latest PMI showed UK business activity continued to expand in September, although growth slowed slightly and fell short of expectations.

Markets nevertheless continue to price in a solid chance of a 25-basis-point BoE rate hike in November.

In the US, investors also increased bets on further Fed rate hikes following hawkish comments from policymakers and stronger-than-expected PMI data.



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