UK 10-year gilt yield fell below 4.35%, its lowest level since mid-January, as renewed uncertainty over US trade policy supported demand for safe-haven debt. Over the weekend, US President Donald Trump announced plans to raise a temporary global tariff from 10% to 15% after the Supreme Court blocked broader measures. US Trade Representative Jamieson Greer emphasized that existing deals, including last year’s agreement with UK Prime Minister Keir Starmer, remain in force. Nevertheless, Andy Haldane, president of the British Chambers of Commerce, said the 15% tariff could take effect from tomorrow unless clarified by the government. Investors also continued to digest strong domestic data released last week. The latest S&P Global UK PMI showed private-sector activity expanding in February at its fastest pace since April 2024, January retail sales beat expectations, and public sector net borrowing posted a £30.4 billion surplus, the largest monthly surplus on record.
