UK 30-year yield hits highest since 1998 in global bond rout

British 30-year government bond yields hit a 25-year high on Wednesday, driven by a relentless sell-off of long-dated debt in the United States and elsewhere.

The benchmark 30-year gilt yield touched a peak of 5.115% in early trade, its highest since September 1998 according to Refinitiv data, as British bonds caught up with sharp moves overnight in U.S. Treasuries.

Long-term sovereign bond yields around the world have reached highs unseen since the global financial crisis as expectations of further strong U.S. jobs data raise the possibility of higher interest rates.

As of 0747 GMT the 30-year yield had eased to 5.079%, still up three basis points on the day. Other long-dated gilt yields also rose on Wednesday, but they were flat at the short end.

Two-year gilt yields were flat on the day.

Gilt investors will be focused on the outcome of an auction of 3.5% 2025 gilts later on Wednesday, which primary dealer RBC expects to produce strong demand owing to technical factors.

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