01.05.202607:57:59UTC+00UK 10-Year Gilt Yields Hold Near 18-Year High

UK 10-year gilt yields held just above 5%, near their highest levels since 2008, as investors weighed the Bank of England’s latest policy decision alongside a renewed surge in oil prices driven by Middle East tensions. The BoE’s Monetary Policy Committee voted 8–1 to keep the Bank Rate at 3.75%, with Chief Economist Huw Pill the sole advocate for a 25-basis-point increase. Governor Andrew Bailey characterized the move as an “active hold,” underscoring the need to monitor whether the energy price shock would prove persistent in light of a weakening economic outlook.

At the same time, oil prices continued to climb after US President Donald Trump maintained a naval blockade of Iranian ports, stoking fears that the Strait of Hormuz could remain closed and prolong upward pressure on fuel costs. Investors also turned their attention to Britain’s forthcoming municipal elections, where opinion polls point to a substantial setback for Prime Minister Keir Starmer’s Labour Party.