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UK 10-year yields ease after oil price drop as bond sell-off cools
Brent crude fell to $93.8 a barrel, after reaching $97 earlier, helping push the UK 10-year yield off an 18-year high of 5.29% toward 5.22%.
The Guardian reports that the early jump in UK borrowing costs has cooled slightly as oil prices dropped, easing pressure across government bond markets. The yield on UK 10-year bonds was up 2 basis points to 5.22%, after trading as high as 5.29%, described as an 18-year high, while 30-year yields were also up 2 bps to 5.86%, after moving above 5.91% earlier.
The outlet links the shift to a broader calming in bond markets and to a lower oil price, with Brent crude down 1% to $93.8 per barrel after reaching $97 earlier in the session. It also notes the timing alongside Andy Burnham’s first Prime Minister’s Questions, where Burnham pledged to stick to the UK’s fiscal rules, a move framed as potentially reassuring investors ahead of the autumn budget.
The coverage says the sell-off has been a headache for UK political leaders, and references wider concerns about rising interest rates, citing the IMF chief’s warning that higher global rates are of particular concern.
The story also highlights market strains beyond the UK, including UK borrowing costs hitting their highest level since 2008, and mentions other government bond sell-offs including India’s 10-year yield topping 7%.
Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%