FX.co ★ UK Gilt Yield Holds Above 5% Ahead of BoE Decision

The UK 10-year gilt yield was steady around 5.04% on Thursday, remaining close to the two-month high reached last week, as investors awaited the Bank of England’s policy decision. Although the BoE is widely expected to leave interest rates unchanged, markets are closely watching the voting split and any guidance on the future policy path. At the same time, renewed US airstrikes on Iran, carried out in response to attacks on American forces across the Middle East, pushed oil prices higher and weighed on risk sentiment. Adding to the uncertainty, the Federal Reserve on Wednesday also kept interest rates on hold, with three FOMC members dissenting in favor of an immediate rate hike.