UK 2-Year Gilt Yield Falls 8.6bps; 30-Year Tops 6% for First Time Since 1998

The 30-year gilt breaking 6% for the first time since 1998 signals that long-end fiscal risk premia, not near-term rate expectations, are driving the curve. The front end's rally alongside that move points to a market pricing sharper easing ahead even as the long end demands more compensation, which is why the 2s/10s spread widened. That divergence matters most for duration-sensitive borrowers and anyone funding at the long end. Whether the long end holds above 6% or the front end keeps rallying is the open question.