#uk-government-bonds

#uk-government-bonds

We expect the Bank of England to keep rates unchanged this week. Inflation is easing but remains above target, and the Bank will want to see the government's fiscal plans before committing to another cut.

In a boost for the chancellor, the yield in effect the interest rate on 10-year UK government bonds has fallen by about 0.15 percentage points this week, after briefly dipping below 4.5% early on Friday for the first time in three months. Government bond yields have tumbled across advanced economies, as investors scrambled to buy safe-haven assets amid fears over US-China trade tensions and signs of stress in the US banking system.