UK 10-year gilt yields hit 5.53%, the highest since 2007, as Andrew Bailey urged credible fiscal policy ahead of the 28 October Budget. Lenders cut secured credit availability for the first time in three years, and the Bank of England is split on a November hike.
UK 10-year gilt yields have climbed toward 5.50% as Bank of England Governor Andrew Bailey warned in Istanbul that fiscal policy must be seen as directed at stability. Source
Gilts are tightening policy before the Monetary Policy Committee (MPC) has voted to. Amid an oil-driven global selloff, the 10-year yield reached 5.53%, a level not seen since 2007, and the 30-year hit 6.05%, the highest since 1998, according to London Stock Exchange Group (LSEG) data flagged by @DeItaone. Bank Rate is only 3.75%. In 1998 it was above 6%. That gap says the long end is pricing term premium and fiscal risk far more than the policy rate.
