1435 GMT - Yields on U.K. government bonds, or gilts, are likely to fall in the medium term as fiscal tightening at the Nov. 26 budget should prompt more interest-rate cuts by the Bank of England, HSBC's Daniela Russell says in a note. However, political uncertainty potentially poses a risk to gilts following reports that U.K. Prime Minister Keir Starmer could face a leadership challenge. "If any political unease can be managed, we continue to see a positive medium-term outlook for gilts, with further declines in yield likely to be ahead in 2026," Russell says. Ten-year gilt yields are last 2 basis points higher at 4.405%, Tradeweb data show. HSBC forecasts them to fall to 3.75% by the end of 2026. (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

November 12, 2025 09:35 ET (14:35 GMT)

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