UK 10-year gilt yields climbed above 4.9%, reaching their highest level since June 10, as traders increased wagers on further Bank of England rate hikes following a sharp rise in crude oil prices. Brent crude hit a two-week high after the United States carried out a new round of strikes in Iran, heightening concerns about the durability of the peace agreement and intensifying inflationary pressures. US President Trump further stoked tensions at the outset of the second day of NATO talks in Ankara, declaring that, in his view, the Iran ceasefire is over.
On the domestic political front, Andy Burnham, the frontrunner to succeed Keir Starmer as prime minister, has yet to name a finance minister, with former energy minister Ed Miliband emerging as the most likely choice. From an economic perspective, a joint survey by the Recruitment & Employment Confederation and KPMG showed that hiring activity registered only a modest decline in June, as geopolitical uncertainty began to recede.
