UK 30-Year Gilt Yield Tops 6 Percent for First Time Since 1998, Then Eases Below 5.9 Percent
The yield on Britain’s 30-year government bond rose as high as 6.029 percent on 1 October, its highest since 1998, Reuters reported citing LSEG data, while the 10-year yield reached 5.510 percent, the highest since July 2007, and the 5-year yield the highest since July 2008. By about 10:31 GMT on 2 October both long yields had eased, the 30-year to 5.8826 percent and the 10-year to 5.3487 percent.
Where the curve stands
UK government bond yields, 2 October 2026
| Tenor | 2 Oct, about 10:31 GMT | 1 Oct close | Change, basis points |
|---|---|---|---|
| 30-year | 5.8826% | 5.9343% | -5.2 |
| 10-year | 5.3487% | 5.4022% | -5.4 |
| 5-year | 4.8678% | 4.9115% | -4.4 |
| 2-year | 4.7592% | 4.8130% | -5.4 |
Benchmark yields per CNBC; intraday levels, not closes.
On our calculation, the 30-year yield is 14.6 basis points below the 6.029 percent reached on Thursday morning and still 112 basis points above the 2-year. The 10-year gilt yields 191 basis points more than the German 10-year Bund, at 3.4368 percent, and about 11 basis points more than the 10-year US Treasury, at 5.239 percent. It also sits 160 basis points above Bank Rate of 3.75 percent.
Why gilts moved more than Bunds
Thursday’s rise followed a sharp rise in US Treasury yields and was steeper than in German Bunds, Reuters said, reminding some analysts of Britain’s fiscal vulnerabilities before this month’s Budget, which is expected to raise taxes. Gilt yields have risen more than those of most other European governments since the start of the Middle East conflict, on concern over the country’s reliance on natural gas for heating and power. Investors expect the Bank of England to raise rates in November or December, with another increase priced for February, the agency reported.
Why it matters: The 30-year gilt is a benchmark for long-term government borrowing costs. Even after Friday’s easing, its yield stands 213 basis points above Bank Rate, on our calculation, as the government heads into a Budget expected to raise taxes.
Outlook: The Budget and the Office for Budget Responsibility’s updated forecast are due on 28 October, and the Bank of England’s next Bank Rate decision is on 5 November.
Sources: HM Treasury, Bank of England, Reuters, CNBC, The Edge.
