UK 30-Year Gilt Yields Hit 28-Year High
UK 30-year gilt yields reached 6.036% on October 7, the highest level since 1998, amid global bond selloffs and inflation concerns.
Yields on UK 30-year gilts reached a 28-year high of 6.036% on October 7, marking the highest level since January 1998. This surge is part of a global bond selloff driven by inflation concerns and high government borrowing. Market pressure has been intensified by oil prices exceeding $100 a barrel, a result of the US-Israeli war against Iran.
John Healey, the Finance Minister of the United Kingdom, met with gilt-edged market makers to discuss market sentiment ahead of the October 28 budget. While the Government of the United Kingdom reaffirmed its commitment to fiscal rules and stability, the selloff in UK gilts has been more pronounced than in US Treasuries. 10-year gilt yields are also approaching their highest levels since 2007.
Economists at Bank of America forecast that the upcoming budget could increase public borrowing by £15 billion in both the current financial year and 2027/28.
