UK 10-year gilt yield falls 1.2bp to 5.344%

The move is a curve story more than a level story: long-end yields easing while the two-year rises points to a modest bear-flattening of the 2s/10s spread, which narrowed to just over 40bp. That matters for anyone pricing UK duration or watching the gilt curve as a gauge of rate expectations, since the front end is doing the repricing rather than the long end. Whether the front-end move extends or reverses is the open question, and the 2s/10s spread is the cleanest single indicator to track.