UK 30-year gilt yields surge to highest since 1998
The surge raises borrowing costs and tightens the Chancellor’s room to maneuver as the FTSE 100 falls 2%, analysts said.
- On Thursday, UK Gilt yields reached 6.07% in morning trading, the highest level since 1998, as the worldwide bond market rout sent London's FTSE Index tumbling by 2%.
- A global bond sell-off has driven Gilt yields to 6% for the first time in nearly 30 years, heaping pressure on Chancellor John Healey ahead of his inaugural Budget later this month.
- Neil Wilson, Saxo investor strategist, said the "relentless rout in the bond market is sending investors running for cover," while Susannah Streeter, Wealth Club strategist, cited concerns about inflation and refinancing costs.
- Markets tumbled across Europe, with Germany's Dax and France's Cac both off 1.3%, as Brent crude prices fell 2% to 99.9 dollars a barrel amid Middle East supply normalization.
- Higher yields force the Government to pay more to finance debt, according to chief technical analyst Axel Rudolph at IG, complicating efforts to balance spending commitments with borrowing control.
12 Articles
12 Articles
Global bond sell-off: Headache for Healey as gilt yields top six per cent
The yield that the UK government pays on its 30-year government bond rose above six per cent for the first time in this millennium, putting Chancellor John Healey in a collision course with markets. Long-term gilt yields, which determine the size of UK government borrowing costs, skimmed 6.04 per cent in the early hours of [...]
Evening Standard
UK borrowing costs soar as gilt yields hit 6% for first time since 1998
The global bond market woes spilt over into equities as London’s FTSE 100 Index tumbled by 1.7%.
30-Year Gilt Yields Rise Above 6% for First Time Since 1998
The long 30-year gilt yield has now pushed through the 6% ceiling for the first time since 1998. Amid a global bond selloff that is worse in the UK… The yield on those gilts has hit 6.065% this morning. Ten-year yields are at a high of 5.526%. Borrowing has never been so expensive… Rates that…
UK 30-year gilt yields surge to highest since 1998
British 30-year government bond yields surged to their highest since early 1998 on Thursday, following another sharp rise in U.S. Treasury yields even as oil prices steadied on renewed hopes of an end to the Iran war.
Why Is UK Stock Market Down Today? FTSE 100, FTSE 250 Fall Sharply in London as Gilt Yields Surge and Inflation Fears Rise; What Investors Should Know
UK stocks fell sharply on October 1 as surging gilt yields, a global bond sell-off and renewed inflation and interest-rate concerns weighed on the FTSE 100 and FTSE 250.
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