FX.co ★ UK 10-Year Gilt Yield Eases on Monday

The yield on the UK's 10-year gilts decreased to 4.621% as investors increasingly expect the Bank of England to implement a 25 basis point rate cut in August, with the anticipation of another reduction later in the year. Recent data from the UK suggests a fragile economic recovery; while warmer weather has boosted food sales, overall economic progress remains lackluster. Disappointing PMI (Purchasing Managers' Index) figures have bolstered the view that the Bank of England may soon pivot its priority from combating inflation to fostering economic growth. Concurrently, the United States and the European Union have reached a last-minute agreement to levy 15% tariffs on most EU exports, including automobiles, thereby circumventing a significant trade conflict. This accord, announced jointly by President Trump and European Commission President von der Leyen in Scotland, has mitigated market unease, though comprehensive details of the agreement have yet to be disclosed.