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Macro

UK 30-Year Gilt Yield Nears 6%, Highest Since 1998

The UK’s strategy of cutting long-dated bond issuance to support gilts, adopted after the 2022 market turmoil under Liz Truss, has failed to contain borrowing costs. The 30-year gilt yield has climbed to its highest level since 1998 and now sits just short of 6%.

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AI take

The failure of the UK's post-2022 playbook — skewing issuance away from long-dated gilts to cap borrowing costs — signals that supply management alone cannot offset the underlying repricing of long-term sovereign risk. That matters beyond the UK, because it suggests the term premium is being reset globally rather than driven by any single issuer's tactics, which feeds directly into the discount rates used to price long-duration assets, including tokenized Treasuries and other yield-bearing RWA products. Whether the 30-year yield holds near 6% or retreats is the open question, and it will likely turn on demand at the long end rather than on issuance calendars.

Generated by AI for reference only.

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