FX.co ★ UK 10-Year Gilt Yield Edges Up

The yield on the UK 10-year gilt increased to 4.53% as uncertainty loomed over the Israel-Iran ceasefire. Israel accused Iran of violating the ceasefire announced by President Trump, citing missile launches detected soon after the declaration. In response, Israel's defense minister authorized significant retaliatory strikes against Tehran. Iran has not officially confirmed its participation in the ceasefire, and its state media denied any missile launches following the truce, albeit without providing further details. Israeli Prime Minister Netanyahu asserted that Israel accepted the ceasefire, claiming that their war objectives had been fulfilled. On the economic front, UK private sector activity in June slightly surpassed expectations, with the composite PMI reaching 50.7. While manufacturing contracted, it did so to a lesser degree than anticipated, and services expanded according to projections. Concurrently, the Bank of England maintained its interest rates at current levels last week, amidst concerns over inflation and geopolitical risks. This decision was marked by an unexpected 6–3 vote split, reflecting cautious uncertainty regarding the inflation trajectory towards the 2% target by 2026.