Rising expectations of interest rate hikes in the UK push the 10-year government bond yield up to 5.509%

With the market increasingly expecting the Bank of England to raise interest rates in the coming months, UK government bond yields have risen to multi-year highs, and the pound has also strengthened. According to London Stock Exchange Group (LSEG) data, rising oil prices are intensifying inflation concerns, prompting investors to price in four rate hikes from the Bank of England by July 2027. The yield on the UK's 10-year government bond reached 5.509%, the highest level since 2007, while the 30-year government bond yield rose to 6% for the first time since 1998. The euro fell to a seven-week low against the pound.