UK 10-Year Gilt Yields Remain at Three-Week Low

2026-02-11 15:32 By Joana Ferreira 1 min. read

UK 10-year gilt yields remained below 4.5%, their lowest level since January 22, as investors digested upbeat US labor market data amid easing political uncertainty in the UK.

January payrolls rose by 130,000, the biggest increase in over a year, while the unemployment rate unexpectedly fell to 4.3%, leading investors to dial back expectations for imminent Federal Reserve rate cuts.

A Fed move is now fully priced in for July rather than June, with the probability of a March cut seen below 5%.

In the UK, Prime Minister Keir Starmer received backing from cabinet colleagues and across the Labour Party after his chief of staff, Morgan McSweeney, stepped down amid the Lord Peter Mandelson scandal.

At the same time, markets maintained expectations for further Bank of England easing.

Although the central bank held its benchmark rate at 3.75% in a divided vote, officials struck a more dovish tone, signaling inflation should begin returning toward the 2% target from April.



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