Inflation, Fiscal Concerns Drive Gilt Yields to Multiyear Highs
Dow Jones
Sep 01
0942 GMT - Yields on U.K. government bonds, or gilts, climb to multi-year highs, mirroring a jump in bond yields globally due to inflation worries as oil prices rise. Uncertainty around U.K. fiscal policy ahead of the budget statement on October 28 is also weighing on gilts, Deutsche Bank Research economists say in a note. The budget could be the biggest gilt test ahead of year-end, they say. A potential sharp increase in government borrowing plans risks causing a painful selloff in U.K. government bonds, they say. U.K. 30-year gilt yields surged to 5.903%, the highest since 1998, LSEG data show. Ten-year gilt yields hit 5.253%, the highest since 2008.
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