iShares GBP Index-Linked Gilts UCITS ETF

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159651

INXG

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UK long-term yields reach their highest levels since 1998, with US 30-year Treasury yields exceeding 5%. This surge is driven by inflation and fiscal concerns, leading to increased borrowing costs for governments, businesses, and households, which may slow economic growth and heighten financial risks. Additionally, rising oil prices due to Middle East conflicts are intensifying inflation pressures, causing central banks to be more cautious about reducing interest rates.

- UK long-dated borrowing costs reached their highest levels since 1998, and US 30-year Treasury yields exceeded 5% due to inflation and fiscal concerns.  
- The increase in yields raises borrowing costs for governments, businesses, and households, which could slow economic growth and heighten financial risks.  
- Oil price surges from the Middle East conflict are exacerbating inflation, leading central banks to approach rate cuts with increased caution.

Vanguard UK Gilt UCITS ETF

Guotai SSE 5-Year China Treasury Note ETF

Pingan Chinabond-0-3 Year CDB Bond ETF

Pengyang Chinabond 30-year Treasury Bond ETF

SPDR Port Lg Term Trsy

SPDR Bloomberg 1-3 Month T-Bill ETF

iShares TIPS Bd

VG Extend Trsy

iShares Barclays Short Treasury

iShares Barclays 1-3 Yr Treasury

iShares barclays 20+ Yr Treasury Bd

Fullgoal Chinabond 7-10 Year Policy Bank Bond ETF

iShares Core UK Gilts UCITS ETF

Vanguard Total Inflation Protd Secs ETF

UK and US long-term yields hit multi-decade highs amid inflation fears

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GLTS

GLTL

UK bonds and the pound remained stable following the Labour Party's local election loss, as noted by Ebury strategist Matthew Ryan. He indicated that the market had anticipated this outcome but warned that increased speculation on a leadership change could alter the situation. Ryan expressed concerns about potential shifts towards larger fiscal spending and tax measures, which could lead to higher bond issuance and affect fiscal sustainability, potentially raising bond yields and deterring foreign investment.

CoinLive

SPDR Bloomberg Barclays UK Gilt UCITS ETF

SPDR Bloomberg Barclays 1-5 Year Gilt UCITS ETF

SPDR Bloomberg Barclays 15+ Year Gilt UCITS ETF

Currencyshares British Pound Trust

UK Bonds and Pound Remain Stable Despite Labour Party's Local Election Loss

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Yields on 10-year Treasurys and U.K. government bonds also increased and reached one-month highs as oil prices surged to their highest since the start of the Middle East war.

Occidental Petroleum

BP p.l.c.

HSPC

iShares 7-10 Year Treasury Bond ETF

SPDR O&G Equip

SPDR Energy Select

SPDR Bloomberg Barclays Euro High Yield Bond UCITS ETF

VanEck Oil Refiners ETF

iShares Germany Govt Bond UCITS ETF

iShares US Oil & Gas Expl & Prod

VanEck Oil Services ETF

VG Energy

United States Oil Fund LP

Us Brent Oil

SPDR Bloomberg Barclays U.S. Aggregate Bond UCITS ETF

Pro Ultr Bloomberg Crude Oil

iShares US Oil Equip & Svcs

SPDR O&G Ex & Prd

ISHRS S&P Glb Engy

Ten-year bund yield hits 15-year high as surging oil price lifts bond yields globally

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GILS

Bond traders are preparing for a potential rise in gilt yields due to uncertainty surrounding Keir Starmer's leadership, with speculation of a leftward shift in the Labour Party. Analysts suggest that a more left-leaning successor could lead to increased government spending and tax hikes, further impacting bond yields. Current UK government bond yields are already the highest in the G7, influenced by inflation and interest rates. A radical fiscal approach could heighten risks in the bond market, prompting concerns of a market tantrum.

cityam

Lyxor Core UK Government Inflation-Linked Bond (DR) UCITS ETF

Lyxor Core UK Government Bond (DR) UCITS ETF

Goldman Sachs

GS Hldg R

‘Bond market tantrum risks’: Gilt traders brace for Labour leftward pivot as Starmer future uncertain

The U.K.'s Debt Management Office auctioned 4 billion pounds ($5.36 billion) in March 2033 gilts, receiving bids totaling 13.2 billion pounds. The bid-to-cover ratio was 3.30, with an average yield of 4.507% and an average price of 97.75. The maximum yield reached 4.509%. The settlement date for the auction is April 10, 2026.

MorningStar

U.K. Sells 4 Billion Pounds in March 2033 Gilt

The Bank of England's plans to reform the gilt repo market to enhance financial stability have raised concerns among traders and hedge funds. While there is general support for improving market resilience, key aspects of the proposal are seen as unfeasible and potentially risky. Traders worry that central clearinghouses could increase costs and liquidity pressures, while proposed limits on leverage may reduce demand for UK bonds. The central bank is alarmed by the growing influence of hedge funds in the bond market, which could lead to instability during economic downturns.

Bond traders: Bank of England gilt shake-up would ‘concentrate risks’ in market meltdown

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European indexes rose, with the UKX up 1.04%, DAX up 1.78%, and CAC up 1.51%, amid optimism for a resolution to the Middle East conflict. The pan-European Stoxx 600 increased by 1.46%. UK inflation remained stable at 3%, while Spain's producer prices fell 7% Y/Y. Retail sales in Denmark rose 2.2% Y/Y. In the bond market, US 10-year Treasury yields fell to 4.33%, and UK yields dropped to 4.85%. Natural gas futures in Europe fell over 6% to below €51 per MWh.

Global X DAX Germany ETF

Lyxor FTSE 100 UCITS ETF

Ossiam STOXX Europe 600 Equal Weight NR

BetaShares Holdings Pty Ltd.

First Trust STOXX EUROPE

RBS Market Access Short FTSE 100 Monthly Index ETF

Huaan France CAC40 ETF(QDII)

European indexes rise on hopes of resolution to Middle East conflict; yields dip

VUKE

HUKX

Yields on U.K. government bonds fell, sharply reversing earlier moves on renewed optimism after President Trump said he would postpone attacks on Iranian power plants.

Vanguard FTSE 100 UCITS ETF

HSBC FTSE 100 UCITS ETF

Gilt yields turn lower after Trump postpones attacks on Iranian power plants

UK government bonds are facing their worst month since the turmoil that led to Liz Truss's resignation. The bond market struggles are driven by rising interest rates, inflationary pressures, and the Bank of England's monetary policy. Investors are worried about potential rate hikes affecting bond yields and prices. This situation mirrors the financial instability during Truss's time, marked by a sell-off in government bonds. Analysts are monitoring the bond market closely, emphasizing the need for caution among investors regarding interest rates and inflation's impact on the economy.

UK Government Bonds Face Worst Month Since Liz Truss Era

iShares GBP Index-Linked Gilts UCITS ETF(INXG.UK)

UK and US long-term yields hit multi-decade highs amid inflation fears

UK Bonds and Pound Remain Stable Despite Labour Party's Local Election Loss

Ten-year bund yield hits 15-year high as surging oil price lifts bond yields globally

‘Bond market tantrum risks’: Gilt traders brace for Labour leftward pivot as Starmer future uncertain

U.K. Sells 4 Billion Pounds in March 2033 Gilt