UK Gilt Yields Surge Following US Tariff Implementation

The yields on long-term UK government bonds, or gilts, experienced a significant surge on Wednesday. This spike was triggered by the official enforcement of US President Donald Trump's tariffs earlier in the day. Notably, the 30-year gilt yield reached its highest point since 1998, marking a pivotal moment for investors and the UK economy alike.

Investor Optimism Fuelled by Government Efforts

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

Detailed Yield Movements

At 9:25 am CET, the 30-year gilt yield saw an impressive jump of 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%. In contrast, the two-year gilt yield decreased by 8.7 basis points to 3.874% at 9:28 am CET, showcasing a varied response across different bond durations.