UK gilt yields retreat from multi-decade highs as political drama mellows, rate hike expectations ease

Yields on U.K. government bonds fell to five-week lows on Tuesday as investor concerns about political developments eased and optimism for a U.S.-Iran peace deal helped scale back expectations for interest rate hikes. 

The yield on the benchmark 10-year bond, or gilt, stood at 4.85% on Tuesday, having eased by around 30 basis points in a relief rally on Friday. The interest rate on the 30-year gilt also fell over 30 basis points last week and continued easing on Tuesday to 5.552%.