10-year UK gilt yields are down 8 bps currently to around 3.572%, leading the fall in global bond yields on the day. 10-year Treasury yields are also seen down a little over 3 bps to 3.892% and contesting the lows for the year currently. It all comes after the softer UK inflation data earlier today here.
It's been quite a dramatic turn in the bond market since the end of October, and the ongoing rally certainly looks rather unrelenting. I mean, if even the UK economy - which is expected to see more sticky and high inflation - is also showing signs of weakening price pressures, it just validates everything else that we're seeing elsewhere. And that vindicates the disinflation narrative that markets have been pricing in over the last few weeks.
