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yesterday

UK 30-Year Gilt Yields Touch 27-Year Peak Before Easing as Budget Date Set

Markets refocused on fiscal signals after the Treasury set 26 November for the Budget, helping cool the sell-off.

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

  • The 30-year gilt yield rose to just under 5.75%, the highest since 1998, before easing to about 5.691% later in the session.
  • Benchmark 10-year borrowing costs briefly moved above 4.8% for the first time since January before slipping back.
  • Sterling recovered from early losses to trade near $1.341 and €1.15 after a sharp drop the previous day.
  • A long-dated gilt auction on Tuesday cleared at a premium, underscoring higher funding costs for the government.
  • Bank of England Governor Andrew Bailey said the rise reflects a global steepening in yield curves and cautioned against fixating on the 30-year rate as investors look to the November Budget for fiscal clarity.