FX.co ★ UK 10-Year Gilt Yield Little Changed after Inflation

The yield on the UK's 10-year gilt remained stable at 4.551%, following the release of May's inflation data, which recorded a rate of 3.4%, significantly surpassing the Bank of England's target of 2%. This data did not substantially alter market projections, with traders anticipating around 48 basis points of rate cuts throughout the remainder of 2025, suggesting approximately two reductions of a quarter-point each. As of now, markets predict no likelihood of a rate cut during the Bank of England’s upcoming meeting on Thursday. The persistent inflation figures suggest that monetary policy will continue to remain tight in the near future. Meanwhile, global investor sentiment remains wary due to increasing tensions between Israel and Iran.