UK Gilts Extend Rally, 10Y Yield Falls 7bps to 5.16%

The continued drop in gilt yields signals that safe-haven demand remains dominant, even after a significant move. This matters because it suggests persistent risk-off sentiment in global markets, which can influence capital flows and borrowing costs beyond the UK. The key question is whether this rally has room to run or if it reflects a temporary flight to quality that could reverse quickly if sentiment shifts.