United Kingdom: 10-Year Gilt Yield Falls to 8-Week Low.

The UK 10-year gilt yield fell to about 4.418%, the lowest level since November 12, as investors increased their expectations that the Bank of England will ease monetary policy in the coming months. Markets now see a strong chance of one or two quarter-point interest-rate cuts before the end of the year. The BoE cut rates by 25 bps to 3.75% in December in a close 5–4 vote, showing that policymakers remain cautious about inflation, which has eased but still sits above the 2% target. BoE Governor Andrew Bailey has stressed that future cuts are likely to be gradual, not aggressive. At the same time, global geopolitical tensions, including instability in Venezuela, have added to risk-off sentiment and supported bond demand, pushing yields lower. In a separate move, the UK’s Debt Management Office will cancel GBP 607.4 m of a gilt maturing in January 2027 thanks to a donation aimed at reducing national debt, reflecting ongoing government efforts to manage borrowing and debt levels.