UK 10-Year Bond Yield Slides to 4.3%
The yield on the UK’s 10-year Gilt edge moderated to 4.31% after economic data showed British employment growth slowed in the third quarter.
In addition, the market reacted to UK Prime Minister Rishi Sunak’s cabinet reshuffle.
The latest jobs report indicated regular pay rose by 7.7%, a slight slowdown from 7.9% in the previous two periods, but still among the highest since this data series began in 2001.
Meanwhile, the unemployment rate was unchanged at 4.2%. Investors now await upcoming data releases on inflation and retail sales later this week.
Meanwhile, Bank of England board member Catherine L. Mann warned that both climate change and the path to net zero will cause higher, more persistent, and more volatile inflation that central banks will have to respond to.
Gilt yields remain relatively unchanged after Tuesday’s U.K. labour market data showed slowing employment growth while wage growth remained high.
U.K. economy is stagnating rather than cratering, which is likely to keep the Bank of England rate on hold in 2024, HSBC analysts said in a note.
“Despite an easing in the real wage squeeze, headwinds from interest rates and inflation remain,” according to analysts. Investors Stake N653bn on Nigerian Sukuk -DMO