UK Gilt Yields Ease From 19-Year Highs

2026-09-02 13:41 By Joana Ferreira 1 min. read

UK 10-year gilt yields pared early gains to trade just above 5.2% on Wednesday, after touching their highest level since August 2007, as investors digested Prime Minister Andy Burnham’s speech to the House of Commons.

Burnham reaffirmed the government’s commitment to fiscal responsibility and debt reduction, while saying the early budget date was intended to limit speculation.

Meanwhile, Chancellor John Healey is expected to deliver his first major speech in the role as soon as next week.

Elsewhere, Brent crude hovered near six-week highs as traders weighed persistent Middle East supply risks against signs that oil was still reaching the market.

Markets continue to price in a 25bp BoE rate hike by year-end, with expectations reinforced by accelerating UK shop-price inflation.

In the US, markets are pricing in a 66% probability of a September Fed hike following hawkish remarks from Fed Chair Kevin Warsh and higher oil prices.



News Stream
UK Gilt Yields Ease From 19-Year Highs
UK 10-year gilt yields pared early gains to trade just above 5.2% on Wednesday, after touching their highest level since August 2007, as investors digested Prime Minister Andy Burnham’s speech to the House of Commons. Burnham reaffirmed the government’s commitment to fiscal responsibility and debt reduction, while saying the early budget date was intended to limit speculation. Meanwhile, Chancellor John Healey is expected to deliver his first major speech in the role as soon as next week. Elsewhere, Brent crude hovered near six-week highs as traders weighed persistent Middle East supply risks against signs that oil was still reaching the market. Markets continue to price in a 25bp BoE rate hike by year-end, with expectations reinforced by accelerating UK shop-price inflation. In the US, markets are pricing in a 66% probability of a September Fed hike following hawkish remarks from Fed Chair Kevin Warsh and higher oil prices.
2026-09-02
UK Gilt Yields Hit 19-Year High as Rate Bets Rise
UK 10-year gilt yields climbed above 5.25%, tracking a broader global bond sell-off and reaching their highest level since August 2007, as rising oil prices and increasingly hawkish signals from major central banks have fueled expectations for higher-for-longer interest rates. Brent crude rose as renewed Middle East hostilities heightened concerns over disruptions to regional energy flows. Markets are now pricing in a 25bp BoE rate hike by year-end, with a November move seen as almost 70% likely and a further hike by February 2027 priced at around 80%. Rate expectations were also reinforced by the latest British Retail Consortium report, which showed UK shop-price inflation accelerating to its highest level in two years. Meanwhile, Fed Chair Kevin Warsh said inflation has not slowed meaningfully and that the Fed still has “work to do,” prompting markets to price a 68% probability of a September rate hike.
2026-09-01
UK 10Y Bond Yield Hits 18-year High
UK 10 Year Government Bond Yield increased to 5.21%, the highest since June 2008. Over the past 4 weeks, United Kingdom 10Y Bond Yield gained 25.78 basis points, and in the last 12 months, it increased 40.07 basis points.
2026-09-01