---
title: "UK 10-Year Gilt Yield Dips"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/273352470.md"
description: "The UK 10-year gilt yield decreased to 4.4% as concerns over US-Europe trade tensions eased. The UK public sector budget deficit narrowed to £11.6 billion in December, better than the expected £13 billion. Headline CPI inflation rose to 3.4%, slightly above forecasts, while services inflation increased to 4.5%. The unemployment rate remained at 5.1%, and wage growth slowed to 4.5%, the lowest since April 2022."
datetime: "2026-01-22T09:48:44.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/273352470.md)
  - [en](https://longbridge.com/en/news/273352470.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/273352470.md)
---

# UK 10-Year Gilt Yield Dips

The UK 10-year gilt yield fell to 4.4% as market concerns over a potential US-Europe trade escalation eased and investors digested stronger-than-expected public borrowing data.

US President Donald Trump said he would hold off on imposing tariffs on goods from European countries opposing his plan to take control of Greenland, adding that a “framework for a future deal” had been agreed following talks with NATO, though details remain unclear.

On the domestic front, the UK public sector budget deficit narrowed to £11.6 billion in December, below market expectations of £13 billion.

Earlier this week, ONS data showed headline CPI inflation rose to 3.4%, slightly above forecasts of 3.3%, while services inflation, a key gauge of domestic price pressures watched by the Bank of England, edged up to 4.5% from 4.4%, a smaller-than-expected increase.

The unemployment rate remained at a pandemic-era high of 5.1%, while wage growth slowed to 4.5%, its weakest pace since April 2022.

### Related Stocks

- [VWRL.UK](https://longbridge.com/en/quote/VWRL.UK.md)
- [VUKE.UK](https://longbridge.com/en/quote/VUKE.UK.md)
- [LUK2.UK](https://longbridge.com/en/quote/LUK2.UK.md)
- [CUKX.UK](https://longbridge.com/en/quote/CUKX.UK.md)
- [HUKX.UK](https://longbridge.com/en/quote/HUKX.UK.md)
- [ISFD.UK](https://longbridge.com/en/quote/ISFD.UK.md)
- [L100.UK](https://longbridge.com/en/quote/L100.UK.md)

## Related News & Research

- [UK bonds claw back losses as Starmer challenger fails to emerge](https://longbridge.com/en/news/286219986.md)
- [UK industrial orders for May fall at quickest pace since 2020 on higher cost pressures](https://longbridge.com/en/news/287197937.md)
- [Solid 7Y Auction Prices "On The Screws" With Solid Foreign Demand](https://longbridge.com/en/news/287100553.md)
- [Why are Britons so fed up?](https://longbridge.com/en/news/286206105.md)
- [Stocks Mixed as Crude Oil Prices and Bond Yields Fall](https://longbridge.com/en/news/286785122.md)