UK Gilt Yields Reach Unprecedented Levels

The yields on UK government bonds, known as gilts, experienced a significant surge on Wednesday, following the implementation of US President Donald Trump's tariffs. The 30-year gilt yield climbed to its highest point since 1998, marking a historic moment in the financial markets.

Investor Optimism Fuelled by Government Actions

British Chancellor Rachel Reeves highlighted the UK government's efforts to reduce trade barriers and negotiate a trade deal with the US, which has sparked optimism among investors. This development comes at a critical time as the global economy faces uncertainties due to trade tensions.

Market Reactions

At 9:25 am CET, the 30-year gilt yield increased by 14.7 basis points to 5.500%. Shortly after, at 9:27 am CET, the 10-year gilt yield rose by 7.6 basis points to 4.695%. In contrast, the two-year gilt yield saw a decrease of 8.7 basis points to 3.874% at 9:28 am CET, indicating a mixed response across different maturity bonds.