Global bond sell-off intensifies, as UK long-term borrowing costs pass 6%

AI desk brief

Global bond markets sold off again as inflation fears and heavy sovereign issuance pushed UK 30-year yields to 6%, the highest since 1998, while US 10-year Treasury yields hit their highest since 2002. The move was driven by worries that high oil prices and persistent inflation will keep central banks, including the Fed, on a higher-for-longer path, with the dollar reaching a three-month high.

For precious metals, the near-term readthrough is mixed to bearish on the rate/USD channel: higher nominal yields and a stronger dollar are headwinds for gold and silver, even as geopolitical oil disruption is helping sustain inflation hedging demand. Traders are watching whether the bond sell-off stabilizes or extends, as that will likely dictate the next leg in real-yield pressure.