Short-term UK government bond yields have declined, influenced by weak data released on Tuesday.

The soft labor market data in the UK and the easing of inflation data in the US have alleviated market concerns about inflation heating up. As a result, short-term UK government bond yields have dropped, following the trend of short-term US government bonds. Scott Helfstein, Global X's head of investment strategy, stated in a report, "The initial inflation data in the US may reassure the market, increasing the possibility of the Fed cutting interest rates." Tradeweb data shows that the 2-year UK government bond yield has fallen by about 2 basis points to 3.963%. The 2-year US government bond yield has also dropped, now at 3.992%.