FX.co ★ UK 10-Year Gilt Yield Falls to Over 1-Week Low

The yield on the UK's 10-year gilt has decreased to 4.667%, marking its lowest point in over a week, influenced by worldwide bond market reactions to anticipated trade tariffs from U.S. President Trump. Prime Minister Keir Starmer engaged in "productive talks" with President Trump regarding the forthcoming tariffs and the possibility of UK exemptions, with further negotiations on the agenda. President Trump is poised to announce extensive reciprocal tariffs within the week, with an initial broad target but indicating that the scope could be constricted initially. Amidst these developments, investors are speculating on potential interest rate cuts by central banks, as the tariffs are expected to hinder global economic growth. Traders are currently forecasting a 55-basis-point reduction in interest rates by the Bank of England by 2025. Notably, despite these speculations, UK gilt yields have ascended by nine basis points throughout March.