UK’s Borrowing Costs Hit Lowest in Over a Year on BOE Bets

The UK’s benchmark bonds rallied to send borrowing costs to the lowest since December 2024, giving Chancellor Rachel Reeves some breathing space on the country’s finances.

The yield on 10-year gilts fell six basis points to 4.34%, with the move driven by signs of cooling economic growth that are boosting bets on Bank of England interest-rate cuts. Two-year yields also fell to the lowest since 2024.