The yield on the benchmark 10-year United Kingdom government bond surged to levels unseen since 2010 as gilt markets seem to expect the Bank of England to increase the pace of interest rate hikes.
Additional monetary tightening might be needed after the country's new government unveiled a new tax policy late last week, which prompted fresh concerns about the UK economy and pushed the pound to a historic low against the United States dollar.
The return on the 10-year gilt rocketed by 31.2 basis points to 4.144% at 5:05 pm CET, after reaching a 12-year high of 4.215% earlier in the day.
