UPDATE 1-UK Bond Yields Fall To Two-Month Low On US-Iran Preliminary Deal

UK Bond Yields Hit Two-Month Low Amid US-Iran Deal

On Monday, yields on British government bonds fell to their lowest levels in two months, largely due to a preliminary agreement reached between the United States and Iran. The news led to a significant drop in oil prices, which plummeted by more than five percent.

Two-year gilt yields saw a decline of over eight basis points, while ten-year yields also experienced a downward shift. This development has alleviated concerns regarding a potential stagflation crisis, prompting investors to adopt a more dovish stance on future interest rate expectations.