UK 10-year gilt yields hit highest since 2008 as Iran war reignites inflation fears

LONDON: British 10-year government bond yields rose to their highest since 2008 on Tuesday, tracking a rising in borrowing costs globally as another increase in oil prices reignited concerns about inflation. The gilts market was also playing catch up with moves elsewhere, following Monday’s UK public holiday. Ten-year gilt yields rose to their highest since June 2008 at around 5.23%, up 7 basis points on the day. Two-year bonds yields were at their highest since March at around 4.59%. Investors were pricing in 30 basis points of interest rate hikes by the BoE by the end of the year.‑Reuters