Gilt yields on long-dated UK gilts have risen to multi-year highs amid the turmoil in global markets and a sell-off in US Treasuries.
Yields on longer-term 30-year paper reached 5.468% by 10am today – reaching a multi-year high of 5.518% at one point in early trading. This was up from a close of 5.353% yesterday and a high of around 5.45% in the middle of January's gilt sell-off.
Yield rises on shorter-dated ten year paper were more muted however – with yields rising to 4.661 by 10am today. This was up from a close of 4.619% yesterday and a one week low on Friday of 4.374% - but compares to the multi-year highs of 4.909% set in mid-January.
The Financial Times said the rise in global borrowing costs had been driven by a sell-off in US Treasuries as President Trump's tariffs took effect, deepening investor concern about the "safe haven" status of US sovereign debt.
It said the ten-year US Treasury yield jumped to 4.51% before falling back to 4.37% yesterday — up 0.11 percentage points on the day — while the 30-year yield briefly rose above 5%. It noted the ten-year yield has risen from less than 3.9% earlier this week.
One strategist told the FT that the sell-off may be "signalling a regime shift whereby US Treasuries are no longer the global fixed-income safe haven".
