UK 10-Year Bond Yields Hit 14-Month High

Forex - The yield on the UK's 10-year government bond rose by approximately 10 basis points to 4.650%, the highest level in 14 months, following an increase in U.S. Treasury yields after the Federal Reserve signaled a slower pace of rate cuts in the future while reducing interest rates. Long-term bond yields also increased ahead of the Bank of England's monetary policy decision, which is expected to maintain interest rates at 4.75% and signal a cautious approach to future cuts, to be announced at 15:00 GMT. UniCredit Research analysts argued that the monetary policy committee would reiterate guidance for a "gradual approach to unwinding policy restrictions." The 2-year gilt yield rose to 4.551%, its highest level in six weeks, before retreating to trade at 4.505%.