UK 10-year gilt yields fell back to around 5.3% as oil prices declined for a second consecutive session, with investors also digesting yesterday’s Federal Reserve rate hike ahead of the Bank of England’s closely watched policy decision. Brent crude is trading around $105 a barrel after Saudi Arabia said it plans to restore roughly half the capacity of its damaged East-West pipeline within days. The Middle East outlook remains uncertain, however, keeping oil prices elevated and adding to the challenge for central banks as they seek to contain inflation without putting excessive pressure on economic activity. The BoE is widely expected to leave rates unchanged in a close decision, but markets will be watching for clues on the future policy path. In the US, the Fed raised rates by 25 basis points, the first increase since July 2023, and signaled another hike later this year amid persistent inflation pressures.