11.11.202507:51:48UTC+00UK Gilt Yields Steady on Weak Labor Data

The yield on the UK's 10-year gilt remained stable, hovering just under 4.5%. This marks its lowest point since December 2024, following weaker-than-anticipated labor market data that bolstered the likelihood of an interest rate reduction by the Bank of England next month. In the third quarter, regular pay growth decelerated to 4.6%, marking the slowest increase since the February-April period of 2022. Meanwhile, total pay, including bonuses, rose by 4.8%, narrowly missing the predicted 4.9% increase. Additionally, the unemployment rate rose to 5.0%, a four-year peak that exceeded the anticipated 4.9%, as the number of unemployed individuals increased and employment declined for the first time since early 2024. Last week, the Bank of England opted to maintain current interest rates, though it noted a potential rate cut in December, contingent on the persistence of domestic inflation pressures. Investors are now focusing on the release of third-quarter GDP figures on Thursday for further insights, as they prepare for the Autumn Budget 2025 later this month.