UK 10-year gilt yields hit highest since 2008 as Iran war reignites inflation fears

Business Recorder reported, citing Reuters, that British 10-year government bond yields rose to their highest level since 2008 on Tuesday. The yield climbed to about 5.23 per cent, up 7 basis points on the day, as borrowing costs rose across global markets.

A further jump in oil prices revived worries about inflation, while the gilt market was playing catch up with moves in other countries after Monday's public holiday. Two-year yields stood at around 4.59 per cent, their highest level since March, signalling that shorter-dated debt was also under pressure.

Investors were pricing in about 30 basis points of Bank of England interest rate hikes by the end of the year. The report ties these moves to renewed inflation fears linked to the Iran war.