UK 10-Year Gilt Yield Rises to 2-Week High

The UK 10-year gilt yield climbed to 4.60%, near a two-week high, following the release of key labour market data. ONS data showed payrolls fell just 8,000 in July, far less than the 20,000 drop expected, with prior losses revised lower. The smaller hit suggests the labour market may be weathering the Labour government’s £26 billion tax hike better than feared. Unemployment stayed at a four-year high of 4.7%, while private-sector wage growth eased slightly to 4.8% but remains well above the BoE’s comfort level for its 2% inflation target. The figures highlight the BoE’s dilemma after last week’s unprecedented two-round vote to cut rates by 25 bps, balancing sticky inflation against signs of labour market weakness. Investors now await Q2 GDP, expected to show just 0.1% growth. On trade, President Trump extended the US–China tariff pause for another 90 days. Geopolitically, US President Trump and Russia’s Vladimir Putin will meet Friday in Alaska in a bid to broker a Ukraine peace deal.