UK Gilt Yields Soar to 19-Year High Amid Oil Price Surge

The UK's gilt yields are nearing a 19-year high as investors bet on further Bank of England rate hikes ahead of Thursday's policy meeting.

The 10-year gilt yield has climbed towards 5.4%, its highest level since August 2007, due to surging oil prices and Britain's vulnerability to energy shocks.

BoE Governor Andrew Bailey has pushed back against expectations of another imminent hike, but rising energy costs have clouded the inflation outlook with oil trading above $100 a barrel amid renewed Middle East hostilities.

Goldman Sachs expects the BoE to hold Bank Rate at 3.75% on Thursday before delivering a 25-bp hike in November as inflation remains elevated and growth holds up.