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3h ago

Global Long Yields Ease After UK Moves to Calm Gilt Rout

Market stress eased after the UK set a Budget date, with the Bank of England signaling flexibility on bond sales.

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Andrew Bailey told MPs that the jump in borrowing costs had generated “dramatic commentary”
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Overview

  • UK 30-year gilt yields touched a 27-year high near 5.75% before pulling back to roughly 5.6%–5.7% after Wednesday’s actions.
  • Governor Andrew Bailey told MPs the gilt sell-off will factor into the Bank of England’s decision on the pace of quantitative tightening, currently set at £100 billion a year.
  • HM Treasury scheduled the autumn Budget for November 26, a step that helped steady gilts and lifted sterling from earlier losses.
  • US 30-year Treasury yields briefly tested 5% before retreating to about 4.90% on softer data, with Japan and parts of Europe also experiencing long-end pressure.
  • Analysts cite larger deficits, reduced long-duration demand, and higher term premia as key drivers, leaving global borrowing costs elevated even after the pullback.