Pound Tumbles Amid Global Bond Rout and Rising Gilt Yields

The Pound has fallen against both the US dollar and euro amid a global bond sell-off that pushed long-dated yields to multi-decade highs.

The dollar strengthened as investors await key economic data, including jobless claims and ISM manufacturing figures. The Sterling fell by 0.38% to $1.3215, while the euro dropped 0.37% to $1.1288, as of 04:53 ET (08:53 GMT).

Gilt yields in the UK reached 6%, their highest level since nearly three decades, adding pressure on Chancellor John Healey ahead of his first Budget this month.

ING's global head of markets, Chris Turner, noted that dollar debasement fears have been set aside for now as the cyclical story takes centre stage. 'Barring some breakthrough in US-Iran negotiations, it looks like the dollar will stay bid in October,' he said, noting that the index has risen in seven of the last 10 Octobers.