HSBC Expects UK 10-Year Gilt Yield to Fall to 4.50% by End-2026

HSBC said UK government bond yields were expected to decline further in the coming months as inflation concerns eased. According to Jin10, HSBC’s head of UK rates strategy Daniela Russell wrote in a report that short-dated gilt yields could fall faster than longer-dated yields. She expected the UK 10-year gilt yield to drop to 4.50% by the end of 2026. Tradeweb data showed the UK 10-year gilt yield was last down 5.5 basis points to 4.750%. The yield previously touched a two-month low of 4.734% after UK inflation data came in below expectations.