UK Gilt Yields Surge Following US Tariff Activation

The yields on UK government bonds, or gilts, experienced a significant rise on Wednesday, coinciding with the enforcement of US President Donald Trump's tariffs. The 30-year gilt yield reached its peak since 1998, marking a historic moment for investors and the UK economy.

Investor Optimism Fueled by Trade Deal Prospects

British Chancellor Rachel Reeves highlighted the UK government's efforts to diminish trade barriers and negotiate a trade duties agreement with the US. This announcement has injected a dose of optimism among investors, influencing the gilt market dynamics.

Detailed Yield Movements

At 9:25 am CET, the 30-year gilt yield leaped by 14.7 basis points to 5.500%. Shortly after, at 9:27 am CET, the 10-year gilt yield increased by 7.6 basis points to 4.695%. Conversely, the two-year gilt yield saw a decrease of 8.7 basis points to 3.874% by 9:28 am CET, showcasing the market's volatile response to recent developments.