
UK Gilt Yields Spike 80bps Post-Iran Attack, Outpacing G7 Peers
After the February 28, 2025 Iran attacks, UK gilt yields surged to 5.115%, a 17-year high, with the sell-off more severe than in other G7 nations. Borrowing costs rose over 80 basis points due to factors like high UK interest rates, inflation, gas dependency, and political uncertainties. Historically, gilts have carried a risk premium during instability, from the 2022 mini-budget to the 1970s inflation crisis. This spike threatens UK fiscal targets, while other market news includes Revolut's profit and new home energy mandates.




























