UK Bond Yields Fall, Suggesting Bank of England Rate Cuts

The UK’s two-year government bond yield has dropped sharply, reaching its lowest point since August 2024. This unexpected decline is fueling expectations of substantial rate cuts by the Bank of England (BoE) in the coming years. Traders are anticipating a 68 basis point reduction by the end of 2026, leading to shifts in liquidity that could impact both traditional and cryptocurrency markets globally.