Spike in UK Government Bond Yields
The drivers behind volatility and positioning, and the outlook of fixed-income managers.
UK government bond yields surged in early 2025, driven by US yield movements, concerns over UK's fiscal health, growth prospects, and persistent inflation. The 30-year yield hit its highest since 1998, and the 10-year reached levels unseen since 2008. Markets now expect slower monetary easing, with rates staying higher for longer due to stubborn inflation pressures.
However, even with current market challenges, these longer-dated gilts open doors for long-term investors by providing positive real yields above inflation rates.
Download this report now for a review of recent spike in UK government bond yields within a historical context.
