Gilts Likely to Gain as BOE Cuts Rates Further in 2026 -- Market Talk

Dow Jones01-07

1531 GMT - U.K. government bonds, or gilts, are likely to rally in 2026 as the Bank of England cuts interest rates further, executives at Amundi Investment Institute say in a note. The U.K. fiscal deficit as a share of the GDP is projected to decline, enabling the BOE to lower interest rates, they say. "Collectively, this creates a constructive environment for gilts." Ten-year gilt yields are last down 5 basis points at 4.429%, having earlier dropped to an 8-week low of 4.391%, LSEG data show. (miriam.mukuru@wsj.com)

 

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January 07, 2026 10:31 ET (15:31 GMT)

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