FX.co ★ UK 10-Year Gilt Yield Falls to 5-Week Low

The yield on the UK's 10-year government bonds, known as gilts, decreased to 4.538%—a five-week low—after data revealed a sharper-than-anticipated economic contraction in April. The country's GDP fell by 0.3%, heightening concerns of an impending slowdown and leading investors to increase their expectations for potential interest rate reductions by the Bank of England. Contributing to the economic woes, UK exports to the US saw an unprecedented decline, subsequent to recent tariff implementations. Despite this unfavorable data, the Bank of England is still projected to maintain current interest rates at its meeting next week. Concurrently, global markets are experiencing turmoil due to heightened trade tensions. U.S. President Donald Trump announced plans to issue letters detailing unilateral tariffs within the next two weeks, ahead of a July 9 deadline. “At a certain point, we’re just going to send letters out,” Trump declared, indicating that countries will have to either accept or decline the terms without further discussion.