1103 GMT - Yields on U.K. 2-year government bonds rise as political tensions and high oil prices cause investors to price an increasingly low likelihood that the Bank of England will be able to cut interest rates in the coming years, ING strategists say in a note. This comes as investors anticipate greater fiscal spending and higher government debt under a new prime minister, they say. Prime Minister Keir Starmer is under heavy pressure to resign following his party's poor performance at last week's local elections. U.K. money markets currently price two or three rate increases in 2026 due to high inflation, LSEG data show. Two-year gilt yields rise 7.8 basis points to 4.544%, having hit a near seven-week high of 4.595%, Tradeweb data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
May 12, 2026 07:03 ET (11:03 GMT)
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