The yield on United Kingdom 2Y Bond Yield rose to 3.85% on June 27, 2025, marking a 0.02 percentage point increase from the previous session. Over the past month, the yield has fallen by 0.24 points and is 0.37 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for UK 2Y.

The yield on United Kingdom 10Y Bond Yield rose to 4.50% on June 27, 2025, marking a 0.02 percentage point increase from the previous session. Over the past month, the yield has fallen by 0.23 points, though it remains 0.32 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. UK 10 Year Gilt Bond Yield - values, historical data, forecasts and news - updated on June of 2025.

As of December 2024, all United Kingdom government debt securities were returning positive yields, regardless of maturity. This places the yield of both UK short term bonds and long term bonds above that of major countries like Germany, France and Japan, but lower than the United States. What are government bonds? Government bonds are debt instruments where a certain amount of money is given to the issuer, in exchange for regular payments of interest over a fixed period. At the end of this period the issuer then returns the amount in full. Bonds differ from a regular loan through how they can be traded on financial markets once issued. This ability to trade bonds makes it more complex to measure the return investors receive from bonds, as the price they buy a bond for on the market may differ from the price the same bond was initially issued at. The yield is therefore calculated as what investors can expect to receive based on current market prices paid for the bond, not the value it was issued at. In total, UK government debt amounted to over 2.4 trillion British pounds in 2023 – with the majority being comprised of different types of UK government bonds. Why are inverted yield curves important? UK government bond yields over recent years have taken on a typical shape, with short term bonds having a lower yield than bonds with a maturity of 10 to 20 years. The higher yield of longer-term bonds compensates investors for the higher level of uncertainty in the future. However, if investors are sufficiently worried about both a short term economic decline, and low long term growth, they may prefer to purchase short term bonds in order to secure assets with regular interest payments in the here and now (as opposed to shares, which can lose a lot of value in a short time). This can lead to an inverted yield curve, where shorter term debt has a higher yield. Inverted yield curves are generally seen as a reliable indicator of a recession, with inverted yields occurring before most recent U.S. recessions. The major exception to this is the recession from the coronavirus pandemic – but even then, U.S. yield curves came perilously close to being inverted in mid-2019.

Mortgage rates increased at a record pace in 2022, with the 10-year fixed mortgage rate doubling between March 2022 and December 2022. With inflation increasing, the Bank of England introduced several bank rate hikes, resulting in higher mortgage rates. In May 2025, the average 10-year fixed rate interest rate reached **** percent. As borrowing costs get higher, demand for housing is expected to decrease, leading to declining market sentiment and slower house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold declined in 2023, reaching just above *** million. Despite the number of transactions falling, this figure was higher than the period before the COVID-19 pandemic. The falling transaction volume also impacted mortgage borrowing. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans fell year-on-year for five straight quarters in a row. How are higher mortgages affecting homebuyers? Homeowners with a mortgage loan usually lock in a fixed rate deal for two to ten years, meaning that after this period runs out, they need to renegotiate the terms of the loan. Many of the mortgages outstanding were taken out during the period of record-low mortgage rates and have since faced notable increases in their monthly repayment. About **** million homeowners are projected to see their deal expire by the end of 2026. About *** million of these loans are projected to experience a monthly payment increase of up to *** British pounds by 2026.

The yield on UK 5 Year Bond Yield eased to 3.95% on June 26, 2025, marking a 0.03 percentage point decrease from the previous session. Over the past month, the yield has fallen by 0.21 points and is 0.07 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. United Kingdom 5 Year Note Yield - values, historical data, forecasts and news - updated on June of 2025.

Graph and download economic data for 5-Year Breakeven Inflation Rate (T5YIE) from 2003-01-02 to 2025-06-26 about spread, interest rate, interest, 5-year, inflation, rate, and USA.

Overnight Interbank Average Rate in the United Kingdom remained unchanged at 4.22 percent on Thursday June 19. This dataset includes a chart with historical data for the United Kingdom Overnight Interbank Average Rate.

Mortgage Rate in the United Kingdom decreased to 7.09 percent in May from 7.19 percent in April of 2025. This dataset provides - United Kingdom BBA Mortgage Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for ICE BofA Euro High Yield Index Option-Adjusted Spread (BAMLHE00EHYIOAS) from 1997-12-31 to 2025-06-25 about option-adjusted spread, Euro Area, Europe, yield, interest rate, interest, rate, and indexes.

Interbank Rate in the United Kingdom remained unchanged at 5.30 percent on Wednesday July 10. This dataset provides - United Kingdom Three Month Interbank Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.