Gilt yields fall 40 basis points from peak after Trump tariffs back down

15-year gilt yields chart - Based on figures for April 2025

Annuity Rates UK - April 2025 review

Annuities continue to increase even though 15-year gilt yields fall 40 basis points from the peak of 5.29% on 9 April 2025.

President Donald Trump announced baseline global tariffs of 10% and higher on specific countries on 2 April to take effect on 9 April. Gilt yields began to soar as China retaliates on 4 April with tariffs on the US.

After Trump back downs on 9 April with a 90-day suspension in global tariffs except for China, relief in markets see gilt yields fall from the 5.29% peak.

Gilt yields continued to decline throughout the month as Trump states the tariffs on China will be much lower than 145% and then eases tariffs on auto parts at the end of the month.

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Providers of standard annuities increased rates by an average of +1.99% this month and we would expect rates to fall by -3.79% in the short term if yields remain at current levels.

For smoker and enhanced annuity providers increased their rates by an average of +1.57% and we would expect rates to fall by -3.37% in the short term if yields do not fall.

Fig 1 below shows the annuity rates changes for the whole market and the proportion that have either increased, decreased or or did not change. It also shows the range of the changes of the annuity rates over the last month:

Annuity Rates Changes Increase No change Decrease   98%   2%   0% Increases of: max 3.2%   Decreases of: max 0 %

Fig 1: Annuity rate changes for the whole market

Fig 2: Change in standard rates last month compared to gilt yields

Fig 3: Change in enhanced rates last month compared to gilt yields