1403 GMT - Yields on U.K. 2-year government bonds, or gilts, drop to a 10-day low as investors reduce their expectations of the Bank of England increasing interest rates in 2026. Markets have scaled back rate-hike expectations after the U.S. and Iran paused attacks, raising hopes of a potential resolution to the Middle East conflict. The price of Brent crude falls 6.5% to $90.54 a barrel. Markets price in a total of 38 basis points of BOE rate rises this year, down from 47 basis points priced on Friday, LSEG data show. Two-year gilt yields fall 4.7bps to last trade at 4.3795%, having hit a low of 4.3464% earlier in the session, LSEG data show. (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 10:03 ET (14:03 GMT)

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