FX.co ★ UK 10-Year Gilt Yield at Near One-Month Low

The yield on the UK's 10-year government bonds dipped to 4.66%—its lowest since September 17—following recent employment data suggesting the Bank of England might have leeway for a gradual reduction in interest rates. The Office for National Statistics (ONS) reported a slowdown in regular pay growth to 4.7% during June–August 2025, down from 4.8%, marking the slowest increase since the March–May 2022 period. Unemployment edged up to 4.8%, slightly surpassing the forecast of 4.7%, and September saw a decrease in payrolls by 10,000, negating a 10,000 increase from the previous month. Investors remain wary as they await the November UK budget, with concerns about the nation's debt. Finance Minister Rachel Reeves faces the challenge of maintaining fiscal responsibility while fostering growth, especially after a £25 billion uptick in employer social contributions. Analysts predict modest economic growth through the end of the year, with inflation expected to hit 4%, which is twice the Bank of England's target rate.