FX.co ★ UK 10-Year Gilt Yield Falls from 7-Week High

The yield on the UK's 10-year government bond has eased to 4.641%, a decrease from its nearly seven-week high. This movement aligns with the declines observed in both US and European bond yields as investors keep a close watch on forthcoming economic data releases. In the UK, the preliminary Purchasing Managers' Indices (PMIs) for manufacturing are anticipated to indicate the smallest contraction seen in the past six months, alongside the strongest growth in the services sector in almost a year. Retail sales are predicted to experience a rebound, aided by recent warm weather. Additionally, analysts indicate that the Bank of England might consider slowing down or halting the sale of bonds with maturities exceeding 20 years, largely due to a decreased demand from traditional purchasers, such as pension funds. On the front of monetary policy, traders have slightly adjusted their expectations, yet they continue to forecast two rate cuts by 2025. On a global scale, European Union representatives are preparing for possible scenarios should trade negotiations with the United States result in a no-deal situation. In Japan, Prime Minister Ishiba has committed to remaining in office despite facing significant electoral challenges.