UK Gilt Yields Drop to 11-Month Low

2025-11-11 07:51 By Joana Ferreira 1 min. read

The UK 10-year gilt yield dropped to 4.4%, near its lowest level since December 2024, after weaker-than-expected labor market data reinforced expectations of a Bank of England interest rate cut next month.

Regular pay growth slowed to 4.6% in the third quarter, the weakest since February–April 2022, while total pay, including bonuses, rose 4.8%, slightly below forecasts of 4.9%.

Meanwhile, the unemployment rate climbed to a four-year high of 5.0%, surpassing expectations of 4.9%, as the number of unemployed increased and employment fell for the first time since early 2024.

The Bank of England left interest rates unchanged last week but indicated that a rate cut in December remains possible, depending on how persistent domestic inflation pressures prove.

Investors now turn to third-quarter GDP figures on Thursday for further guidance ahead of the Autumn Budget 2025 later this month.



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