UK bond yields fall to one-week low as oil prices retreat

UK gilt yields fell to a one-week low as oil prices retreated from recent highs. Two-year gilt yields dropped 6 basis points to 4.362%, while ten-year yields fell below 5% to 4.986%, with markets pricing in roughly a 50% chance of a Bank of England rate rise by September. Lower crude prices and a softer global rate outlook are supportive for oil-importing emerging markets such as India.