UK 10-year gilt yields climbed to 4.8%, extending their rebound from recent lows as markets weighed political uncertainty and global risk sentiment. Greater Manchester Mayor Andy Burnham’s victory in the Makerfield by-election, where he won 54.8% of the vote, added to domestic political focus as he strengthens his position as a potential challenger to Prime Minister Keir Starmer. Meanwhile, crude prices ticked higher after planned US-Iran peace talks in Switzerland were abruptly canceled, raising doubts over the durability of the tentative Middle East ceasefire agreed over the weekend. On monetary policy, the Bank of England held rates at 3.75% and maintained a cautious stance, lowering its Q4 2026 peak inflation forecast to 3.25% from 3.6%. The decision followed the Federal Reserve’s steady rates stance, despite signals from some policymakers of possible further tightening later this year. Money markets now price in at least a 25bp rate hike from both the BoE and the Fed this year.