UK Bond Yields Surge to Historic Highs

On Monday, the United Kingdom witnessed a significant surge in bond yields, with the 30-year gilt yield reaching its highest point since April 1998. This historic rise has sparked concerns over the potential impact of the Labor budget on borrowing costs. Additionally, the 10-year yields have climbed to levels not seen since 2008, further intensifying market anxieties.

Upcoming Inflation Report Awaited

Market participants are now turning their attention to the upcoming inflation report, scheduled for release on Wednesday. Expectations are set for a slight increase from November's 2.6%, adding another layer of uncertainty to the financial landscape.

Detailed Yield Movements

Specifically, the 30-year gilt yield increased by 3.7 basis points to 5.445% by 9:29 am CET. Following closely, the two-year gilt returns saw a rise of 3.6 basis points to 4.57%. Similarly, the 10-year gilt yield experienced a 4.1 basis point increase, reaching 4.88%.