2025.06.0914:59:55UTC+00UK 10-Year Gilt Yield Edges Up

The yield on the UK's 10-year government bonds increased to 4.66% as investors anticipated the announcement of the government's spending review scheduled for this Wednesday. This review will outline departmental budgets extending to 2029. Despite global uncertainties, the UK economy has demonstrated resilience, highlighted by robust business surveys and a strong GDP performance in the first quarter, signaling recovery from a challenging conclusion to 2024. Nevertheless, concerns about high public debt levels persist, and the populace is keenly anticipating improvements in living standards, as noted by Finance Minister Rachel Reeves. The market anticipates that the Bank of England will maintain its current interest rates at the upcoming meeting on June 19. In terms of UK economic data this week, April’s job market statistics, GDP, and industrial output figures will be released. On the international front, US and Chinese representatives are convening in London today to advance discussions following a preliminary trade agreement reached in Geneva last month, subsequent to a call between Presidents Donald Trump and Xi Jinping.