Global Market: UK Gilt yields rise as oil, US Treasury yields weigh on bonds

What happened: The 10-year gilt yield climbed 6 basis points to 5.44% by 0712 GMT, its highest since October 1, as rising oil and US Treasury yields weighed on global bonds. Key numbers: 10-year gilt yield up 6 basis points to 5.44%, highest since October 1, near a 19-year peak of 5.51%. Why it matters: The rise could leave the government with less room to meet longer-term fiscal targets, adding to market sensitivity around the budget. The Debt Management Office is set to auction January 2028 and July 2031 gilts on Wednesday, testing investor demand.

The 10-year gilt yield climbed 6 basis points to 5.44% by 0712 GMT, its highest since October 1, as rising oil and US Treasury yields weighed on global bonds.

The rise could leave the government with less room to meet longer-term fiscal targets, adding to market sensitivity around the budget. The Debt Management Office is set to auction January 2028 and July 2031 gilts on Wednesday, testing investor demand.