UK gilt yields slipped ahead of the Bank of England's rate decision as investors largely expect no change and will focus on the vote split and the BoE's assessment of second‑round inflation effects. Markets assign a 19% probability to a Thursday hike but fully price three 25bp hikes by March 2027. The US Federal Reserve raised rates on Wednesday as widely expected; a Fed official said inflation remains very high, increasing the prospect of further tightening. Tradeweb data showed the 10‑year UK

UK gilt yields slipped ahead of the Bank of England's rate decision as investors largely expect no change and will focus on the vote split and the BoE's assessment of second‑round inflation effects. Markets assign a 19% probability to a Thursday hike but fully price three 25bp hikes by March 2027. The US Federal Reserve raised rates on Wednesday as widely expected; a Fed official said inflation remains very high, increasing the prospect of further tightening. Tradeweb data showed the 10‑year UK gilt yield down 1.3 bps at 5.282%.