UK Gilt Yields Hit Multi-Month Lows

The yields on United Kingdom government bonds, commonly referred to as gilts, experienced a significant drop on Friday, with most reaching their lowest levels in several months. Notably, the two-year gilt's return fell to its lowest since late September 2024.

Global Economic Tensions Spur Investor Caution

The announcement of reciprocal tariffs by United States President Donald Trump has caused widespread concern among Washington's trading partners, leading to a cloud of uncertainty over the global economic outlook. This has prompted investors to seek safer investment avenues, such as bonds, further driving down gilt yields.

Detailed Yield Movements

At 9:12 am CET, the 10-year gilt's return decreased by 9.2 basis points to 4.431%. Similarly, the yields on the two-year and five-year gilts dropped by 9.9 and 10.4 basis points to 3.916% and 3.996%, respectively. By 9:13 am CET, the 30-year gilt's yield had fallen by 8.6 basis points to 5.101%.