The yield on the UK 10-year gilt rose to 4.65%, marking its highest level in a month, as investors responded to escalating trade tensions and fiscal uncertainty. The spotlight has shifted back to US trade policies, with President Trump's 90-day suspension of reciprocal tariffs concluding on Wednesday. The UK is urgently pursuing US approval for a deal that would eliminate tariffs on British steel; failure to secure this could result in duties soaring to 50%. This development is vital for the UK's beleaguered steel industry, as the US is its second-largest market for exports. Domestically, Chancellor Rachel Reeves has signaled possible tax increases in the autumn budget as a means to address a public finance shortfall, following Labour's compromises on welfare reform to stave off internal party dissent. Meanwhile, financial markets are anticipating a 25 basis point reduction in the Bank of England's interest rate come September.