UK government bond yields have decreased as investors anticipate a statement from UK Finance Minister Rachel Reeves. According to Kathleen Brooks, Head of Research at XTB, investors are looking for assurances on the government's commitment to responsible public spending. Despite this, caution persists ahead of the UK inflation data release.
Brooks noted that a significant rise in UK inflation could potentially drive bond yields higher. Data from Tradeweb indicated that the yield on the 10-year UK government bond fell by one basis point to 4.860%, while the 30-year bond yield also dropped by one basis point to 5.418%.
Last week, yields on long-term UK government bonds reached multi-year highs.
