The British government paid the highest yield since 1999 for the 10-year treasury bond bid. Investors are demanding higher premiums to compensate for continued inflationary pressure and the possibility that next month's budget may increase spending. The UK Debt Management Office sold £4.25 billion of treasury bonds due in July 2036 with 4.875% coupon on Tuesday, with an average yield of 5.383%. The average yield from the bid sale of the same bond last month was 5.16%, the highest in nearly 20 years. Since then, 10-year UK Treasury yields have climbed further, hitting a 19-year high on Monday, reaching a high of 5.44%. After the bond was sold, it was around 5.39%. Evelyne Gomez-Liechtenstein, multi-asset strategist at Mizuho International, said: “The weak performance of this auction further confirms the view that, despite the current level of yield being attractive, investors are still unwilling to prolong the period in this position.”

The British government paid the highest yield since 1999 for the 10-year treasury bond bid. Investors are demanding higher premiums to compensate for continued inflationary pressure and the possibility that next month's budget may increase spending. The UK Debt Management Office sold £4.25 billion of treasury bonds due in July 2036 with 4.875% coupon on Tuesday, with an average yield of 5.383%. The average yield from the bid sale of the same bond last month was 5.16%, the highest in nearly 20 years. Since then, 10-year UK Treasury yields have climbed further, hitting a 19-year high on Monday, reaching a high of 5.44%. After the bond was sold, it was around 5.39%. Evelyne Gomez-Liechtenstein, multi-asset strategist at Mizuho International, said: “The weak performance of this auction further confirms the view that, despite the current level of yield being attractive, investors are still unwilling to prolong the period in this position.”