Global Bond Sell-Off Drives 30-Year Treasury Yield to 5.444% as UK Gilts Near 19-Year High
Updated
Updated · The Guardian · Sep 24
Global Bond Sell-Off Drives 30-Year Treasury Yield to 5.444% as UK Gilts Near 19-Year High
3 articles · Updated · The Guardian · Sep 24
Summary
30-year U.S. Treasury yields climbed to 5.444% on Thursday—the highest since 2004—while 10-year UK gilt yields rose to 5.38%, close to last week's 19-year peak.
Middle East war-driven oil prices, inflation fears and expectations of higher interest rates have fueled the bond dump, with investors also worrying about U.S. fiscal deficits and heavy new debt supply.
In Britain, the rise in gilt yields has likely erased more than half of the £24 billion fiscal headroom built up in March, complicating John Healey's budget plans and raising the prospect of tax hikes or spending cuts.
Bank of England chief economist Clare Lombardelli said prolonged high energy prices could force policy tighter than the current 3.75% rate, while the Bank is also bracing for a 24% jump in January's household energy price cap.