London, Feb 19, 2026, 08:06 GMT — Regular session
- National Grid shares slipped 0.3% in early London trading, building on a drop of over 2% from the previous day.
- UK inflation slowed to 3.0% in January, keeping the spotlight on when the Bank of England might start cutting rates.
- Gilt yields are drawing attention, with the BoE’s March 19 decision on the horizon and National Grid’s results set for May.
Shares of National Grid plc slipped 0.33% to 1,344 pence in Thursday’s early session, having hit a low point of 1,331 pence.
Investors are back to watching the interest-rate outlook. UK inflation eased last month, a development that can sway regulated utilities—these stocks often track bond yields.
London’s wider market notched a fresh record on Wednesday, though the heavy lifting was done by miners and defence stocks—not classic defensives. “UK stock indices remain an attractive proposition,” said Axel Rudolph, senior financial analyst at IG, citing lower valuations compared to U.S. benchmarks. Reuters
National Grid slipped 2.03% on Wednesday, finishing at 13.49 pounds. The move came despite the FTSE 100 touching a new peak, up 1.23% to 10,686.18. Shares in the utility now sit roughly 4% under Tuesday’s 52-week high of 13.99 pounds.
One wrinkle: services inflation, closely tracked as a sign of local price pressure, held at 4.4%. Even so, traders are still leaning toward a quarter-point BoE cut next month, according to Reuters.
The central bank left Bank Rate unchanged at 3.75% earlier this month, with its next policy call slated for March 19.
The rate debate lands right at National Grid’s feet, hitting the so-called “bond proxy” trade. These are stocks known for steady dividends, often losing some shine as government yields climb, but gaining favor when those yields slip.
Some dip-buyers stepped in early Thursday, judging by the day’s range, though the stock remains under pressure after a steep drop from this week’s high. It’s exposed if the rates outlook shifts, or if gilt yields spike again.
Investors now turn to May 14, when the company releases its full-year results. They’ll be watching for any details on spending, allowed returns, and what management says about the balance sheet.
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