Expectations of a rate cut by the Central Bank of England are rising, leading to a decrease in UK bond yields

On February 26th, Jinshi data reported that the yield on UK government bonds fell as expectations of a rate cut by the Central Bank of the UK increased, while weak US economic data led to a decline in US bond yields. Dinggra, a policy maker at the Central Bank of the UK, said in a speech on Monday that the Central Bank of the UK has always believed that the possible gradual quarterly rate cuts could put pressure on the economy. The market expects a rate cut of 57 basis points this year, up from 55 basis points last week. According to Tradeweb data, the yield on two-year UK bonds is 4.165%, previously touching a two-week low of 4.143%; the 10-year yield earlier touched its lowest point in nearly two weeks at 4.472%.