UK 10Y Bond Yield Hits 14-month Low

The UK 10-year gilt yield fell further to 4.3%, hitting its lowest level since early December 2024, as US President Donald Trump’s new 10% global tariffs boosted demand for safe-haven assets. Although Trump had threatened to raise the rate to 15% over the weekend, the lower-than-expected levy provides only limited relief for UK businesses. The tariffs follow a setback for Trump on Friday, when the US Supreme Court struck down his sweeping “liberation day” import duties imposed last year. Under the new measures, the US Customs agency will impose “an additional 10% ad valorem duty on imported articles of every country” for 150 days from Tuesday, unless specifically exempt. Elsewhere, recent strong fiscal data, combined with a relatively dovish Bank of England meeting, weaker employment figures, and benign inflation, helped soothe markets, temporarily easing concerns over domestic political uncertainty.

UK 10 Year Government Bond Yield decreased to 4.32%, the lowest since December 2024. Over the past 4 weeks, United Kingdom 10Y Bond Yield lost 17.57 basis points, and in the last 12 months, it decreased 25.06 basis points.

UK 10-year gilt yield fell further below 4.35%, its lowest level since December 2024, as renewed uncertainty over US trade policy supported demand for safe-haven debt. Over the weekend, US President Donald Trump announced plans to raise a temporary global tariff from 10% to 15% after the Supreme Court blocked broader measures. US Trade Representative Jamieson Greer emphasized that existing deals, including last year’s agreement with UK Prime Minister Keir Starmer, remain in force. Nevertheless, Andy Haldane, president of the British Chambers of Commerce, said the 15% tariff could take effect from tomorrow unless clarified by the government. Investors also continued to digest strong domestic data released last week. The latest S&P Global UK PMI showed private-sector activity expanding in February at its fastest pace since April 2024, January retail sales beat expectations, and public sector net borrowing posted a £30.4 billion surplus, the largest monthly surplus on record.