UK Gilt Yields Fall as Fed Cut Bets Grow

The yield on the UK’s 10-year gilt fell to 4.75%, tracking US Treasuries lower after weak US jobs data reinforced expectations the Federal Reserve will resume rate cuts in September. The drop follows a recent global bond sell-off that had pushed the UK’s 10-year yield to an eight-month high and 30-year borrowing costs to their highest since 1998, underscoring persistent fiscal concerns. Attention now turns to the Autumn Budget, where Finance Minister Rachel Reeves faces pressure to deliver tax hikes or spending cuts to meet fiscal rules. On monetary policy, Bank of England Governor Andrew Bailey told MPs there is “considerably more doubt” about when UK rates can be lowered. Markets no longer expect another cut this year, with the next one only fully priced in for April.