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UK 30-Year Gilt Yields Reach 1998 High, Pound Slips

5/12/2026

Summary

Story summary

Britain’s 30-year gilt yields rose to 5.807 percent on Tuesday, the highest since 1998, amid a Labour leadership battle.
The 10-year gilt yield climbed above 5 percent to 5.11 percent.
The pound weakened to 1.352 per U.S. dollar.
The FTSE 100 fell 1 percent to 10,173.86.
Deutsche Bank economists said borrowing-cost spikes erased billions of fiscal headroom, prompting Saxo Bank strategist Neil Wilson to warn bond vigilantes may short the pound if Labour raises spending.

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Story summary

Britain’s 30-year gilt yields rose to 5.807 percent on Tuesday, the highest since 1998, amid a Labour leadership battle.
The 10-year gilt yield climbed above 5 percent to 5.11 percent.
The pound weakened to 1.352 per U.S. dollar.
The FTSE 100 fell 1 percent to 10,173.86.
Deutsche Bank economists said borrowing-cost spikes erased billions of fiscal headroom, prompting Saxo Bank strategist Neil Wilson to warn bond vigilantes may short the pound if Labour raises spending.