The UK government bond yield is falling, after previously weak employment data in the UK.

The yield on UK government bonds fell as weaker-than-expected UK employment data increased the likelihood of interest rate cuts by the Bank of England in the coming months. The UK unemployment rate rose to 5.2% in December, higher than the average expectation of 5.1% from economists surveyed by The Wall Street Journal. The average wage growth, excluding bonuses, slowed to 4.2% in the three months to December, lower than the 4.4% in the three months to November. According to data from Tradeweb, after the release of this data, the yield on two-year UK government bonds dropped to an 18-month low of 3.557%. The yield on 10-year UK government bonds fell by 2.8 basis points, and now stands at 4.366%.