The yield on the UK’s 30-year government bond has reached 5.6%, the highest since 1998. This spike mirrors increases in U.S. sovereign yields and raises concerns about financial stability. Since last Thursday, the Nasdaq has fallen by 10%, while bitcoin has decreased by 8%. Over the same period, the UK 30-year bond yield increased by 8%, and the U.S. 30-year yield rose by 12%. The UK has not balanced its budget since 2001, contributing to the current gilt market unrest. The dramatic rise in yields recalls the 2022 UK pension crisis, where a sudden increase in borrowing costs nearly collapsed the financial system. At that time, UK pension funds held about 28% of the gilt market, and the crisis occurred in a $1.5 trillion market. The Bank of England intervened with emergency gilt purchases to stabilize the situation. The recent turmoil is linked to global trade uncertainties, which could disrupt supply chains and increase costs.
Zia Yusuf
@ZiaYusufUK
·
Apr 7 Bad news for Rachel Reeves.
Bond yields are no longer declining – they are spiking.
US Treasuries reversed course today and UK Gilts are now back to where they were when Trump announced the tariffs.
It had been assumed the hammer blow to UK growth from the tariffs would at
J.M. Hamilton
@jmhamiltonblog
·
48m UK bonds were also under severe pressure after the US moves. The yield on a 30-year UK gilt hit 5.518% on Wednesday morning, up 16 basis points and surpassing a previous 27-year high of 5.472% set in January.
SL Speaks
@SLSpeaksmedia
·
56m [UK] BREAKING:
UK borrowing costs hit highest level since 1998
30-year gilt yields jump to 5.507%
Triggered by global bond sell-off
Fallout from Trump’s 104% China tariffs & China’s 84% reply
Hedge funds unwind $1T basis trade, spiking yields
BoE under
Mohamed A. El-Erian
@elerianm
·
Jan 10 UK government bond yields are higher again this morning, with the 10-year Gilt up 4 basis points at 4.85%.
This is as bond markets around the advanced world are eagerly waiting for this morning’s release of the monthly US jobs report.
(Remember, the rise in yields is a global
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