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2025-09-12 16:11:21
UK 10-Year Gilt Yield Falls Nearly a One-Month Low] ⑴ UK 10-year gilt yields fell below 4.6%, hitting a one-month low. ⑵ Data showed economic stagnation in July, in line with expectations, with a three-month rolling growth rate of 0.2%, also in line with expectations. ⑶ Industrial and manufacturing output unexpectedly declined, and the trade deficit widened slightly. ⑷ Weak data exacerbated downward pressure on gilt yields, as investors weighed the outlook for fiscal and monetary policy. ⑸ Chancellor of the Exchequer Rachel Reeves plans to introduce further tax increases in November to plug a multi-billion-pound budget shortfall. ⑹ The Bank of England will meet next week and is expected to keep interest rates unchanged after its August cut. ⑺ Markets are focused on the November 6 meeting (before the budget), with another rate cut widely expected. ⑻ Policymakers are balancing the economic downturn, fiscal austerity, and inflation targets.
