UK 10-year gilt yields rose to 5.25% on Friday after falling more than 10bps in the previous session, as investors digested stronger-than-expected retail sales and this week’s central bank decisions. UK retail sales rose 0.5% in August, defying expectations for a 0.2% decline and rebounding from July’s fall. Department stores led the recovery as retailers resolved stock availability issues, suggesting consumer spending remains resilient despite elevated energy prices and the prospect of tighter monetary policy. The Bank of England held rates steady on Thursday and said it would stop selling very long-dated gilts under its quantitative tightening programme, while warning that a prolonged Middle East conflict could prompt tighter policy. The Federal Reserve and Bank of Japan also raised rates this week and signaled scope for further tightening this year. Elsewhere, Brent crude continued to fall as concerns over Saudi supply disruptions eased.