The UK 10-year gilt yield fell to around 4.505%, moving further away from the ten-week high of 4.5527% on January 28, as markets await the Bank of England policy meeting this week. Investors are positioned for the BoE to hold rates at 3.75% on Thursday, with officials expected to offer limited guidance on the timing of future cuts while inflation remains elevated. December inflation at 3.4%, the highest in the G7, and persistent concerns over underlying price pressures have led markets to scale back easing bets. Traders now price almost no chance of a cut this week and less than a 50% probability of more than one cut this year, compared with expectations for two cuts in mid-January. Recent UK data has been resilient, including an improvement in manufacturing PMI and steady economic momentum, supporting the view that the BoE can stay cautious.