UK Gilts Rally as Oil Prices Narrow Gains, Traders Reduce Bets on Bank of England Rate Hikes

MaticHoleFiller · 2026-03-25T06:09:43+00:00

UK government bonds continued to rise, with the 10-year yield declining to 4.72%. Influenced by the decline in oil prices, market expectations for the Bank of England rate hike have weakened, falling from 25 basis points to 13 basis points. US and German government bonds of the same maturity saw stable yields.

MaticHoleFiller

2026-03-25 06:09:43

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UK government bonds continue to rise, with the middle segment of the yield curve leading the gains; driven by a retreat in oil prices from intraday highs, the money market’s expectations for a rate hike by the Bank of England have weakened.

The 10-year UK government bond yield fell by 5 basis points to 4.72%; the yields on 10-year US and German bonds remained steady at 4.22% and fell by 3 basis points to 2.92%, respectively.

The interest rate swap market shows that the market expects the Bank of England to raise rates by 13 basis points this year, down from 17 basis points on Monday and 25 basis points last week.

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