The yield on UK 10-year government bond eased back to 0.77% on Friday, after jumping on Thursday to its highest level since early June, as the market price action triggered by the Fed's sudden hawkish turn faded away. Meanwhile, investors reacted to a batch of economic data released this week. UK retail sales unexpectedly dropped in May, as food stores and non-store retailers were affected by the easing of restrictions for hospitality and non-essential retail; while the country's inflation rate rose more than expected in May to the highest level since July 2019 and above the Bank of England's 2.0% target. Also, the labor market consolidated its recovery, with the number of employees on company payrolls rising at a record pace in May and wages growing at their fastest since 2007 in the year to April. In other news, investors remained concerned about the rising number of coronavirus cases in the UK, as well as post-Brexit tensions over the Northern Ireland protocol.
Historically, the United Kingdom Government Bond 10Y reached an all time high of 16.09 in November of 1981. United Kingdom Government Bond 10Y - data, forecasts, historical chart - was last updated on June of 2021.
The United Kingdom Government Bond 10Y is expected to trade at 0.85 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.06 in 12 months time.