HSBC UK rates strategist Daniela Russell said in a report that gilt yields are
likely to fall further over the coming months as inflation concerns ease, with
short-dated yields likely to decline faster than long-dated yields. HSBC expects
the UK 10-year gilt yield to reach 4.50% by end-2026. Tradeweb data showed the
UK 10-year yield fell 5.5bps to 4.750% after UK inflation came in below
expectations; it earlier hit a two-month low of 4.734%.
