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.



News Stream
UK Gilt Yields Remain High Amid Rate Hike Bets
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.
2026-09-24
UK Gilt Yield Climbs as Rate-Hike Bets Persist
UK 10-year gilt yields surged back above 5.3% as oil prices rebounded and investors assessed preliminary September PMI data. Brent crude rose after five consecutive sessions of losses, with uncertainty surrounding US-Iran talks persisting as President Trump threatened further action against Iran while also suggesting that a deal could be reached soon. Meanwhile, the latest PMI survey showed that UK business activity continued to expand in September, although growth slowed slightly and came in below expectations. Despite the softer reading, markets are still pricing in a solid chance of a 25-basis-point Bank of England rate hike in November. In the US, much stronger-than-expected PMI data, pointing to the steepest expansion in business activity in more than five years, combined with a series of hawkish remarks from Federal Reserve policymakers, reinforced expectations of further monetary tightening. The outlook comes after the Fed raised rates last week for the first time since 2023.
2026-09-23
UK Gilt Yields Hold Near Recent Lows as Oil Prices Ease
UK 10-year gilt yields stabilized around 5.23%, close to their lowest level since September 8, as a recent decline in oil prices supported the broader market. Brent crude remained below $100 a barrel amid reports that Saudi Arabia was preparing to restart a key pipeline and that the US had made progress in talks with Iran, despite President Trump’s earlier threat against Iran at the UN General Assembly. The move in oil prices, however, did little to ease expectations for Bank of England tightening, with markets still pricing a solid chance of a 25bp rate hike in November. Meanwhile, preliminary September PMI data showed continued UK business expansion, although growth slowed slightly and came in below expectations. Services firms cited weak domestic demand and geopolitical uncertainty as headwinds, while manufacturing activity was boosted by AI investment and higher defense spending. In the US, hawkish comments from Fed policymakers strengthened expectations of further rate hikes.
2026-09-23