FX.co ★ UK 10-Year Gilt Yield Edges Down Ahead Fed, BoE Decision

The yield on the UK's 10-year government bonds (gilts) slightly decreased to 4.63% as investors remained wary in anticipation of upcoming central bank meetings. The Bank of England is anticipated to maintain interest rates at 4% on Thursday, while simultaneously decelerating its £100 billion annual bond sale program. The Consumer Price Index (CPI) for August remained unchanged at 3.8% year-on-year, essentially doubling the Bank of England's target and equaling July's 18-month peak. Labor market figures were consistent with expectations, indicating wage growth at 4.8% excluding bonuses (4.7% including bonuses), steady unemployment at 4.7%, and a reduction of 8,000 in payrolls. These statistics have left market expectations for Bank of England rate cuts relatively unchanged, with limited anticipation of any easing before the year's end. Meanwhile, in the United States, it is broadly anticipated that the Federal Reserve will lower interest rates by 25 basis points on Wednesday, with traders projecting at least two additional cuts by the end of 2025.