FX.co ★ UK 10-Year Gilt Yield Falls on Monday

The yield on the UK's 10-year government bonds, or gilts, decreased to 4.556% following a 7 basis point increase last week. Investors are now focused on a busy week of data releases, including the UK's employment report and second-quarter GDP figures. The unemployment rate is anticipated to remain constant at 4.7%, marking a high nearly unmatched in three years, while wage growth is predicted to slow to 4.7%, the slowest rate in nine months. GDP is expected to rise by just 0.1% in June, leading to a minor 0.1% growth for the entire second quarter. After the Bank of England's recent tight vote favoring a rate cut, market expectations for additional easing have been reduced, with a 76% probability of a rate cut in December now being forecasted. The central bank has indicated that any policy changes would be gradual. On the global front, the 90-day tariff truce between the United States and China expires on Tuesday, with markets hopeful for another extension. In a geopolitical development, U.S. President Trump is scheduled to meet Russian President Vladimir Putin on Friday in Alaska, aiming to reach a peace agreement regarding Ukraine.