UK 10-Year Gilt Yield Falls 30 Basis Points Over Past Month

The yield on the UK 10-year gilt stood at 5.14%, a 30-basis-point decline over the past month. Brent crude traded near $92.20 a barrel on Nov. 9.

Recent declines in oil and natural gas prices may be easing inflation pressure and the inflation premium embedded in gilt yields. The figures do not establish that falling energy prices caused the yield decline.

UK consumer inflation was 3.5% year over year in September, while energy inflation was 13.8%. A gilt is a UK government bond.

Markets will watch future UK inflation readings and gilt yields, along with oil supply signals, actions by the Organization of the Petroleum Exporting Countries and the International Energy Agency, and developments in the Middle East.