UK PMI data falls short of expectations, increasing the likelihood of a Bank of England rate cut

ChainCatcher news, after the UK Purchasing Managers' Index preliminary value fell short of expectations, UK government bond yields declined slightly. The UK October composite PMI preview dropped from 52.6 in September to 51.7, below the consensus forecast of 52.4 by economists surveyed by The Wall Street Journal. A weak economy may lead the Bank of England to cut interest rates more than previously anticipated.

Data from LSEG Refinitiv shows that the UK money market reflects a high likelihood of interest rate cuts in November and December. According to Tradeweb, after the data release, the 2-year UK government bond yield was 4.111%, down from 4.123% prior. The 10-year UK government bond yield was 4.228%, lower than the 4.235% before the data was published. (Jin Ten)