Summary

UK government bond yields are expected to decline in 2026 due to anticipated Bank of England interest rate cuts, driven by disinflation. While political uncertainty and fiscal concerns persist, the favorable macroeconomic outlook is expected to outweigh these risks, leading to lower gilt yields.

https://www.theedgesingapore.com/news/news/goldman-says-gilts-look-past-political-risk-strong-2026