Institution: UK government bond yields fall, US expected to cut interest rates.

The yield on UK government bonds fell before the Federal Reserve announced its interest rate decision at 1800 Greenwich Mean Time. Data from the London Stock Exchange Group shows that the market expects a 99.9% chance of a 25 basis point rate cut at that time. This would bring the federal funds target rate range to 3.75%-4.0%. Patrick Munnelly of Tickmill Group stated in a report that there is ample evidence supporting another 25 basis point rate cut, despite the lack of key US economic data due to the government shutdown. Tradeweb data shows that the yield on UK 10-year government bonds dropped by 1 basis point to 4.387%.