UK Bond Yield Surge Raises Alarm: Is US Next After September Cut?
The financial world is reeling as UK bond yields skyrocket, with the 30-year gilt breaching 5.70%—a level unseen since April 1998. This surge defies expectations, occurring despite the Bank of England's aggressive rate-cutting cycle of five reductions in twelve months.
Market participants now question whether the US Treasury market will follow suit after the Federal Reserve's anticipated September rate cut. The bond market turmoil signals deeper structural shifts as investors reassess long-term inflation expectations and sovereign risk premiums.