FX.co ★ Gilt Yields Tick Up Amid Political Fallout and US-Iran Tensions

UK 10-year gilt yields edged toward 4.85% as investors digested Olly Robbins’ testimony before the Commons Foreign Affairs Committee and tracked US–Iran developments ahead of President Trump’s firmly set Wednesday deadline. Robbins, who was dismissed by Prime Minister Keir Starmer over the Peter Mandelson ambassadorship controversy, told MPs he had come under pressure to sign off on Mandelson’s appointment but had no direct contact with No. 10 during the vetting process.

Adding to the uncertainty, Iran’s state broadcaster IRIB rejected reports that an Iranian delegation had traveled to Pakistan for talks with the US, contradicting earlier claims. At the same time, President Trump accused Iran of “numerous” ceasefire violations, further heightening tensions.

On the economic front, the latest UK labour market data showed slowing wage growth, an unexpected fall in unemployment, and a drop in job vacancies. However, the market reaction was muted, as the figures predate the outbreak of war and do not capture current labour market conditions.