Bond yields fall further as UK inflation eases

<p>This tees up a bid in bonds as we get into the open in Europe later, with UK gilt yields set to observe a marked fall surely. The early signs of a peak in inflation is a welcome development for the economy and gives some breathing room for the BOE to not be too overly aggressive in tightening policy further.</p><p>10-year Treasury yields was down slightly at 3.770% but are now down over 4 bps to 3.744% on the day. It is a function of what we should see in gilts later, as markets take on a less hawkish view on the BOE outlook now. If anything else, this should weigh on sterling more than other major currencies today.</p>

This article was written by Justin Low at www.forexlive.com.