The yield on the UK 10-year government bond remains steady above 5% as inflation risks continue to exert pressure.
智通财经2026/08/24 08:46Show original
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- The UK 10-year government bond yield remains steady above 5%, as investors weigh ongoing inflationary pressures such as oil prices above $90 per barrel, potential fuel supply disruptions, low natural gas inventories in the Eurozone, and the prolonged Iran conflict. The market awaits details on measures against Iran from the US Treasury Secretary today and is also watching for the Federal Reserve Chair's speech at Jackson Hole on Friday.
- The money market continues to price in one interest rate hike by the Bank of England before the end of the year, with another 25 basis point increase expected before early 2027. July inflation rose to 2.9%, the highest since March, with core inflation at 2.6%. Although the PMI strengthened and consumer confidence hit a two-year high, providing initial support for the new Prime Minister, the UK remains vulnerable to another round of inflationary pressures from the Iran conflict.
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