UK 10-year gilt jumps to 5.23% on oil inflation fears
Business
On Tuesday, the U.K.'s 10-year government bond (called a gilt) soared to 5.23%, the highest it's been since 2008.
This jump was mostly driven by rising oil prices and fresh concerns that inflation could stick around for longer.
The market had just reopened after a public holiday, so the move quickly brought the UK in line with global trends.
Markets price 30bp BoE hike
With oil prices climbing, energy costs are putting extra pressure on inflation.
The two-year gilt yield also saw its highest level since March, as investors now expect the Bank of England to hike interest rates by around 30 basis points before year-end.
The U.K.'s bond market is echoing what's happening globally, as countries everywhere deal with uncertainty around inflation and borrowing costs.