UK 5-year gilt yields rise over 4 basis points to 4.093%, reaching highest level since June 16

UK 5-year gilt yields rise over 4 basis points to 4.093%, reaching highest level since June 16

July 02, 2025 - British short-dated bond yields, which are more sensitive to changes in inflation and interest rate expectations, rose on Wednesday after faster-than-expected inflation of 3.6% [1]. This unexpected increase in inflation pushed the 5-year yields to their highest level since June 16, reaching 4.093%.

Longer-term borrowing costs also edged up, with the 30-year gilt yield (GB30YT=RR) briefly touching its highest level since May 29, up about 4 basis points to 5.498% at 0700 GMT.

Investors slightly trimmed their expectations for interest rate cuts by the Bank of England for August and the remainder of 2025 shortly after the data was published at 0600 GMT.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_S8N3QT0C8:0-uk-5-year-gilt-yields-rise-after-june-inflation-unexpectedly-hits-3-6/