The 10-year US Treasury yield settled at approximately 4.37% on Friday, its lowest level in seven weeks, after the PCE inflation report came in broadly in line with forecasts and modestly reduced expectations for an aggressive Federal Reserve tightening cycle.
The UK 10-year gilt yield fell to 4.736%, an over two-month low, as June's flash composite PMI dropped to 49.4 — signalling economic contraction for the second consecutive month — reducing the urgency for further Bank of England rate increases.
Keir Starmer's resignation as UK Prime Minister triggered an immediate recalibration of political risk across British financial markets, with sterling falling below $1.32 and gilt yields hitting two-month lows as investors assessed the fiscal and monetary policy implications of a potential Burnham government.
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