Britain's government bond yields are heading for their biggest one-week decline since 2023 after weak economic data and reduced investor concerns about potential political changes in the country.
Yields on 10-, 20- and 30-year gilts dropped almost 30 basis points from last Friday's levels. Last week, these yields reached their highest levels in decades amid concerns about domestic politics and rose the most among Group of Seven nations since the start of the Iran war.
The weekly decline marks the largest drop since December 2023 and is approximately three times greater than the fall in equivalent German bund yields over the same period.
On Friday, gilt yields decreased between 3 and 8 basis points across different maturities.
Most of the decline occurred after UK inflation data for April came in weaker than expected at 2.8% on Wednesday. Additional economic indicators suggested Britain's economy is experiencing pressure from the fallout of the Iran war.
