16.09.202507:44:24UTC+00UK 10-Year Gilt Yield Steady Ahead BoE

The UK's 10-year gilt yield remained steady at 4.64% following the latest employment report, as investors approached the upcoming week with caution due to anticipated central bank decisions and significant UK economic data releases. The Bank of England is projected to maintain interest rates at 4% this Thursday while decelerating its annual £100 billion bond reduction. Wage growth recorded at 4.8% excluding bonuses and 4.7% including bonuses met market expectations. Unemployment held steady at 4.7%, and payroll figures showed a decrease of 8,000, which was less severe than forecasted. These figures suggest a gradually cooling labor market instead of a sharp downturn, leaving predictions for BoE rate cuts largely unchanged. Focus will also turn to the August Consumer Price Index (CPI), projected at 3.8% year-over-year, significantly above the BoE's 2% target, as well as forthcoming retail sales data. Concurrently, the Federal Reserve is anticipated to lower rates by 25 basis points on Wednesday, with markets expecting at least two additional reductions by the close of 2025.