UK Bond Rout Deepens Amid Soaring Gas Prices

A sell-off in European and UK government bond markets continued on Wednesday, September 2, 2026, as natural gas prices rose further, fueling concerns about inflation. The 10-year gilt yield reached its highest level since August 2007, increasing by as much as seven basis points to 5.29% before paring the move later in the session.

Germany's equivalent rate also saw a rise, up five basis points to 3.39%, a level last seen in 2011. French and Italian yields followed suit, contributing to the broader market trend.