12/06/2026
🇬🇧 UK Gilt Yields Collapse Across the Board: 2-Year Yield Plunges 14 bps as Peace Hopes Cool Inflation Bets
UK government bond yields plummeted on Friday, tracking a sharp slide in oil prices fueled by revived hopes of a potential breakthrough/end to the Middle East conflict.
The 2-year UK Gilt yield—highly sensitive to interest rate expectations—dived by as much as 14 basis points to 4.212%, latest down 12 bps, tracking toward its biggest single-day decline in nearly a month.
The short-end leading the sell-off reflects a aggressive cooling of BOE rate-hike bets. The geopolitical risk premium evaporated rapidly, forcing capital to rotate out of inflation-hedging strategies and aggressively reprice the interest rate path.