UK PMI Plummets into Contraction, UK Debt Yields Fall to Near-Two-Week Low

The UK's preliminary comprehensive PMI for May recorded a value of 48.5, which is a significant drop from April's 52.6, falling below the threshold line, indicating a synchronized contraction in manufacturing and service sector activities. Following the release of the data, market expectations for a near-term interest rate hike by the Bank of England have noticeably cooled down. Tradeweb data shows that the yield on 10-year UK government bonds immediately fell by 5 basis points to 4.944%, hitting a new low in 11 days.