Institution: UK economic data drives the UK government bond market

eToro's Lale Akoner stated that this week's UK labor market and inflation data are the main drivers of the UK bond market. She mentioned that weak UK employment data and overall inflation slowdown increase the possibility of a rate cut by the Bank of England, which in turn pushes down short-term UK bond yields. Data from the London Stock Exchange Group shows that the market price already reflects an 86% probability of a rate cut by the Bank of England in March. Tradeweb data shows that the yield on two-year UK government bonds has dropped by 1 basis point, now standing at 3.569%.