From The Economic Times · Reuters · · 1m 30s
UK 30-Year Gilt Yields Hit 28-Year High
Global bond selloff pushes UK 30-year gilt yields to 28-year high as finance minister prepares for budget.
In brief
Global bond selloff pushes UK 30-year gilt yields to 28-year high as finance minister prepares for budget. UK 30-year bond yields reached 6.036%, their highest since January 1998, amid global bond selloff and rising inflation concerns. Originally reported by The Economic Times.
UK 30-Year Gilt Yields Rise
British 30-year bond yields rose to a 28-year high on Wednesday as a global bond selloff pushed equivalent US borrowing costs to their highest since 2002.
Yields Peak at 6.036%
Yields on 30-year gilts jumped 13 basis points to peak at 6.036% at 1341 GMT, their highest since January 1998.
Global Bond Selloff Intensifies
Inflation and high levels of government borrowing remain a big worry for bond investors globally, exacerbated by oil prices rising above $100 a barrel.
Finance Minister Prepares for Budget
Wednesday's move in gilts comes the day after finance minister John Healey met economists to gauge market sentiment ahead of his first budget on October 28.
Government Statement on Fiscal Credibility
Britain's finance ministry emphasized fiscal credibility in a challenging global economic environment, reaffirming commitment to fiscal rules and economic stability.
Bank of America Forecast
Economists at Bank of America forecasted £15 billion ($19.9 billion) increases in public borrowing for both current financial year and 2027/28, reducing leeway for longer-term budget goals.
Market Reaction to Selloff
The selloff in gilts was sharper than for US Treasuries, with 30-year Treasury yields rising 7 bps while UK 10-year gilt yields rose 10 bps to 5.48%.
The takeaway
UK 30-year bond yields reached 6.036%, their highest since January 1998, amid global bond selloff and rising inflation concerns.
