UK 30-year bond yields reach 25-year high

Following the inflation data released in the country on Wednesday, the 30-year bond yield reached 5.119 percent today, marking its highest level since September 1998. During the day, the country's 10-year bond yields rose by 2 basis points to reach 4.69 percent, nearing the 4.755 percent level, which is the highest in the last 15 years.

Experts state that the rising public borrowing costs in the country, which has traditionally been able to borrow at low interest rates, are expected to create ripple effects throughout the economy. Evaluating the increase in borrowing costs, Mark Dowding, Chief Investment Officer at RBC BlueBay Asset Management, commented, "Weak inflation data has triggered a new cycle of rising bond yields in the UK."

According to data released today by the UK's Office for National Statistics (ONS), the Consumer Price Index (CPI) in the country rose by 6.7 percent annually in September, exceeding market expectations while remaining unchanged on an annual basis. Despite annual inflation remaining steady in September, economists believe the BoE will not raise interest rates at its November 2 monetary policy meeting due to expectations that household energy bills will fall next month.

News Source: 12punto