UK gilt yields drop to one-month low after weak GDP data
LONDON, June 12 (Reuters) - British government bond yields briefly dipped to their lowest level in just over a month on Thursday after the release of weaker-than-expected gross domestic product data for April.
Ten-year gilt yields GB10YT=RR fell to 4.507% at 0705 GMT, down more than 4 basis points on the day, and two-year yields GB2YT=RR dropped just under 4 bps to 3.874% before recovering. Both yields were the lowest since May 8.
German bond yields were also lower by a broadly similar amount.
April's bigger-than-expected 0.3% fall in British GDP reflected a record monthly drop in exports to the United States after President Donald Trump announced tariffs, but also a slump in property sales which had surged in March ahead of the end of a temporary tax break.
Interest rate futures showed investors expect 52 bps more Bank of England rate cuts by the end of the year and 72 bps of cuts by the end of July 2026.
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