The yield on the UK 10-year gilt fell below 4.35%, its lowest level since mid‑January, as renewed uncertainty over US trade policy boosted demand for safe-haven government debt. Over the weekend, US President Donald Trump announced plans to increase a temporary global tariff from 10% to 15% after the Supreme Court blocked broader measures. US Trade Representative Jamieson Greer stressed that existing agreements, including last year’s deal with UK Prime Minister Keir Starmer, remain in force.
Even so, Andy Haldane, president of the British Chambers of Commerce, warned that the 15% tariff could still take effect as early as tomorrow unless the government issues further clarification. At the same time, investors continued to digest a run of strong domestic economic data released last week. The latest S&P Global UK PMI showed private‑sector activity in February expanding at its fastest pace since April 2024, January retail sales exceeded expectations, and public sector net borrowing recorded a £30.4 billion surplus, the largest monthly surplus on record.
