UK Economic Dashboard: Gilt Yields Spike to 18-Year High as Oil Shock Ripples Through Borrowing Costs, Inflation and Housing

UK 10-year gilt yields surged to 5.2% on Tuesday — an 18-year high — after being swept up in a global bond rout triggered by soaring oil prices. The yield jumped 15 basis points in early trading, with longer-dated 20-year gilts spiking to 5.9%. Panmure Liberum economist Simon French estimates this could slash Chancellor Rachel Reeves's fiscal headroom by up to £6 billion, cutting her already thin £22.7 billion buffer by more than a quarter. The UK suffered...