London, Feb 12, 2026, 08:59 GMT — Session ongoing
- Shares of National Grid slipped in early trading after hitting a fresh 52-week peak just the day before
- UK GDP figures revealed the economy stalled in late 2025, leaving the rate outlook uncertain
- Next week, traders will focus on UK inflation data, while National Grid is set to release its full-year results in May
Shares of National Grid (NG.L) dipped 0.5% to 1,322.5 pence on Thursday, retreating slightly after gains in the previous session.
The pullback is significant since the stock’s surge has hinged just as much on the interest rate narrative as on company fundamentals. Utilities behave like long-duration assets, with regulated cash flows extending far into the future, making their valuations sensitive to changes in bond yields.
The rate debate reignited after figures revealed Britain’s economy expanded by only 0.1% in the fourth quarter, missing the 0.2% forecast as business investment took a steep dive. Luke Bartholomew, deputy chief economist at Aberdeen, noted “some tentative signs that sentiment turned a corner,” but warned political uncertainty might still dampen confidence. Reuters
National Grid surged 2.86% to 1,329 pence on Wednesday, reaching a fresh 52-week peak. Trading volume, however, remained under its 50-day average, MarketWatch reports.
Short-dated gilt yields — the interest rates on UK government bonds — have settled following recent volatility, a key metric utilities investors watch closely. On Feb. 12, the two-year gilt yield hovered near 3.62%, slipping slightly from the prior session, according to Trading Economics data.
The mood remained constructive overall. The FTSE 100 gained roughly 0.15% during the session.
Traders are already eyeing the next big macro event: on Feb. 18, the Office for National Statistics will release January’s consumer price inflation figures. If inflation comes in hotter than expected, expect yields to climb and pressure on rate-sensitive defensive sectors.
There’s a more straightforward risk at play. Should gilt volatility spike again, or if the market grows skeptical about swift rate cuts, stocks often seen as bond stand-ins could lose appeal.
National Grid runs regulated electricity networks across Britain, plus electricity and gas networks in the U.S. Northeast. This setup helps smooth out earnings volatility but also means the company remains closely linked to regulators and the cost of capital.
The company’s next major milestone is the 2025/26 full-year results, scheduled for May 14. Shortly after, on May 28, ordinary shares will go ex-dividend for the final payout.
