Global Bond Rout Deepens, Pushing UK Borrowing Costs to 28-Year High Amid Rising Oil Prices

Global government bond markets are experiencing a significant sell-off, driving yields to new highs. The yield on the UK's 30-year gilt climbed to 5.89%, its highest since February 1998, while the 10-year yield reached 5.246%, a level not seen since June 2008. This rout is fueled by rising oil prices, with Brent crude surpassing $91 a barrel due to renewed fighting in the Middle East, stoking inflation fears and increasing expectations for interest rate hikes by central banks.