The UK 10-year Gilt yield fell just a few basis points to 2.78% as inflation fell to 2.2% against average market expectations around 2.5%. This data is quite satisfying for both the Bank of England and the Government coming as it does on the back of better economic growth and falling unemployment. Governor Mark Carney still reiterates the Bank's mandate of targeting 2% inflation but their guidance on when base rates may rise is clearly contingent upon a fall in the unemployment rate to at least 7%, which has just edged lower to 7.6%