UK 30-year gilt yield hits 6%, highest since 1998, as bond rout grips G7

On October 1, 2026 the yield on UK 30-year gilts touched 6.029% intraday, a level unseen since March 1998, making Britain the first Group of Seven economy to breach the 6% long-bond threshold since Italy during the 2012 eurozone crisis. The 10-year yield reached 5.51%, its highest since 2007, and the FTSE 100 fell 1.7% to 10,428. The move was driven by a global bond rout as Brent crude briefly topped $118 per barrel on the U.S.–Iran conflict and a naval blockade of Iranian ports that disrupted more than 10 million barrels a day of supply, reigniting inflation fears. Investors also fretted about the UK Treasury's heavy borrowing needs ahead of a Budget later in October. Higher yields push up the government's debt-service bill and squeeze fiscal headroom, deepening pressure on Chancellor plans and household mortgage rates.