UK 10-Year Gilt Yields Below 4.5% on Soft Growth Data

2026-02-12 09:08 By Joana Ferreira 1 min. read

UK 10-year gilt yields held below 4.5%, their lowest level since January 22, as investors reacted to weaker-than-expected economic data.

Figures from the ONS showed the economy grew by 0.1% in Q4 2025, undershooting forecasts of 0.2%.

On an annual basis, GDP rose 1.0%, below expectations and marking the slowest pace of expansion since Q2 2024.

Monthly data also revealed unexpected contractions in industrial output and construction.

The weak economic data added to the political strain on Prime Minister Keir Starmer, who has faced calls to resign over his appointment of Peter Mandelson as ambassador to the US, despite Mandelson’s well-known connections to the late convicted pedophile Jeffrey Epstein.

At the same time, markets continued to anticipate further monetary easing from the Bank of England.

While policymakers kept the benchmark rate unchanged at 3.75% in a split decision, their more dovish tone suggested inflation could move back toward the 2% target from April.



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