UK Gilt Yields Surge Following US Tariff Implementation

The yields on long-term United Kingdom government bonds, known as gilts, experienced a significant rise on Wednesday. This surge came in the wake of United States President Donald Trump's tariffs officially taking effect. Notably, the yield on the 30-year gilt reached its highest level since 1998.

Investor Optimism Fueled by UK Government's Trade Barrier Reduction Efforts

British Chancellor Rachel Reeves highlighted the UK government's commitment to reducing trade barriers and securing a trade deal with the US. This announcement has played a pivotal role in stoking investors' optimism amidst the current economic climate.

Detailed Yield Movements Across Different Gilt Maturities

The return on the 30-year gilt saw a notable increase of 14.7 basis points, reaching 5.500% by 9:25 am CET. Similarly, the 10-year gilt yield rose by 7.6 basis points to 4.695% by 9:27 am CET. In contrast, the two-year gilt yield experienced a decrease of 8.7 basis points, settling at 3.874% by 9:28 am CET.