The UK 10-year gilt yield fell below 4.6%, following Treasury yields lower on higher expectations of a Fed rate cut. In the UK, however, GDP data beat expectations, reducing the urgency for further Bank of England cuts. The economy grew 0.3% in Q2, triple the forecast 0.1%, with June output up 0.4% on stronger services and construction after May’s dip. Labour data also surprised, with payrolls falling just 8,353 in July, the smallest drop since January, and prior months were revised lower. The resilience eases pressure on Chancellor Rachel Reeves, despite tax hikes and a higher minimum wage since April. Markets now see rates holding at 3.5% next year, scaling back bets on more cuts. The BoE cut rates by 25 bps to 4% last week in a narrow 5-4 vote, as some policymakers warned that sticky inflation may limit easing.