In early trading, bond yields across major markets have moved slightly higher, with the UK seeing the sharpest rises. Although the changes are modest, they reflect the ongoing upward momentum in long-term borrowing costs.
The yield on 10-year UK gilts rose by 2 basis points, or 0.02 percentage points, to 4.82%. Meanwhile, the yield on 30-year gilts climbed by almost the same amount, reaching 5.38%.
Jim Reid, market strategist at Deutsche Bank, said that the global bond selloff shows few signs of abating. “The global bond selloff showed few signs of letting up over the last 24 hours, with long-term borrowing costs continuing to move higher across the board,” Reid said. “The UK was particularly in the spotlight, as its 10-year gilt yield (+1.5bps) hit another post-2008 high of 4.81%, whilst the 30-year yield (+2.2bps) hit a post-1998 high of 5.37%.”
While the UK is attracting particular attention due to these milestone highs, Reid noted that other countries are following a similar pattern. “But even though the UK might appear the most striking in terms of when yields last traded at these levels, other countries have experienced a similar pattern too,” he said.
In France, the 10-year yield reached its highest level since October 2023, while Germany’s 10-year bund yield hit its highest point since July. In the US, the 10-year Treasury yield is stabilising but remains high at 4.69%, on track to close at its highest level since April. Meanwhile, Japan’s 10-year yield is at its highest level since 2011.
