The yield on the 10-year UK gilt continued its upward trajectory, surpassing the 4.4% mark and reaching its highest level since October 2022, as investors eagerly awaited the Bank of England’s policy meeting scheduled for Thursday. The two-year gilt yield also exceeded 4.95%, a level not seen since the 2008 financial crisis. British policymakers will raise interest rates for the 13th consecutive time, pushing them to their highest point in 15 years, in response to persistent inflationary pressures and recent data indicating a faster-than-expected rise in wages and sustained economic growth in April. Investors are also keeping a close eye on May’s inflation data, set to be released on Wednesday. Speculation among investors suggests that the UK policy interest rate may reach its peak at 5.75% by the beginning of next year.
United Kingdom Government Bond 10Y
