FX.co ★ UK 10-Year Gilt Yield Eases Ahead CB Decisions

The yield on the UK's 10-year government bonds has decreased to 4.64%, reflecting similar trends in both Europe and the United States. This shift comes as investors exercise caution in anticipation of a significant week for central bank decisions and crucial UK economic data releases. The Bank of England is anticipated to maintain interest rates at 4% on Thursday while slowing down its annual £100 billion bond reduction strategy. Attention will also be directed towards UK inflation, employment, and retail sales figures. The Consumer Price Index (CPI) for August is expected to remain at 3.8% year-on-year, reaching an 18-month peak and nearly double the Bank’s target of 2%. The Bank of England is projected to implement a rate cut next quarter and another early in the following year. Meanwhile, the Federal Reserve is largely expected to announce a 25 basis point rate cut on Wednesday, with market participants forecasting at least two additional reductions by the end of 2025.