UK gilt yields fall to 5-week low on Iran oil hopes

LONDON, May 26 (Reuters) - ​British government ⁠bond yields fell sharply ​on Tuesday to their lowest in ​around ‌five weeks on hopes that there would ⁠be progress on reopening ⁠the Strait of Hormuz, ​tracking a similar move in U.S Treasuries.

Ten-year gilt yields fell as ​low ‌as 4.824% at 0702 GMT, their lowest since April 20 and down more than 7 basis points ​from Friday's close, with similar sized ‌moves for two-year and 30-year yields, which move opposite to prices.

The ‌gilt market, like that for U.S. Treasuries, was shut on Monday for ​a public holiday.

At 0715 GMT, the 10-year ‌yield was 6 bps lower at 4.841%.

Bank of England interest rate futures ⁠now ⁠show only a 50% chance ‌of a quarter-point rate hike by the ​end ​of July, though two rate ‌increases are priced in by February next year. (Reporting by David Milliken; Editing by Kate Holton)