UK Gilt Yields Jump Amid Oil-Driven Inflation Fears

The UK 10-year gilt yield rose to 4.97% on Wednesday as investors became concerned about inflation due to rising oil prices.

The increase came after a two-week low, driven by renewed military exchanges between the US and Iran that sent oil prices higher.

Investors are also cautious ahead of the US Federal Reserve's policy decision later in the day and the Bank of England's meeting on Thursday.

The Federal Reserve is widely expected to keep rates unchanged, but markets still assign a 30% chance of a 25-basis-point hike.