Money markets have reduced their wagers on additional interest rate hikes from the Bank of England, with the probability of a 25-basis-point increase by the end of the year no longer seen as a 100% certainty.

This is the first time since July 8 that market pricing has dipped below a 100% likelihood for a quarter-point rate rise. On Tuesday, expectations for the Bank of England's Monetary Policy Committee's December meeting dropped by 4 basis points to 24.7 basis points.

The shift followed market speculation that the United States and Iran might reach a deal, which helped push oil prices and UK government bond yields lower. The global benchmark Brent crude oil price fell below $80 per barrel for the first time since July 13. Meanwhile, the yield on the 10-year UK gilt declined by 6 basis points to 4.89%, its lowest level since July 10.