UK Gilt Yields Soar to Three-Week High Amid Oil Price Surge
The UK's 10-year gilt yield has reached its highest level in over three weeks, exceeding 5.0% for the first time since July 23.
This move is part of a broader global bond selloff, driven by renewed concerns over the Iran conflict and subsequent oil price increases.
However, the rise in UK yields was tempered by signs of a weakening labour market, which could reduce pressure on the Bank of England to tighten policy.
The latest employment figures showed unemployment remaining at 4.9% in the three months to June, above the forecasted 4.8%, while payroll employment fell by 86,000 year-on-year.
Regular earnings growth stood at 3.5%, slightly above expectations, reinforcing expectations that the BoE may keep rates unchanged for the remainder of the year.