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The 10-year gilt yield climbed 6 basis points to 5.44% by 0712 GMT, its highest level since October 1, when it approached a 19-year peak of 5.51%, the report stated. The move came as benchmark 10-year US Treasury yields rose 4 basis points to 5.31%, while oil prices increased by 65 cents to just above $101 a barrel. Higher energy prices can add to inflationary pressures, potentially keeping interest rates elevated for longer and weighing on government bonds. Also Read |US Market: Software stocks hit 2026 highs as AI disruption fears ease The rise in gilt yields also came a day after Finance Minister John Healey met economists working for primary dealers, known as gilt-edged market makers or GEMMs, to assess market sentiment ahead of his first budget on October 28. Britain's finance ministry said the meeting focused on the importance of fiscal credibility amid a challenging global economic environment, while reaffirming the government's commitment to fiscal rules and economic stability, growth and jobs. Also Read |Global Market: South Korean shares fall as investors await Samsung Electronics earnings Investors have been closely watching the government's fiscal position ahead of the budget. Economists at Bank of America estimated on Tuesday that the budget could result in an additional £15 billion ($19.9 billion) of public borrowing in both the current financial year and 2027/28, the report stated. Such an increase could leave the government with less room to meet its longer-term fiscal targets, adding to market sensitivity around the budget. The rise in gilt yields comes amid broader pressure on global bond markets, with higher oil prices and elevated US Treasury yields adding to concerns about inflation and borrowing costs. The UK Debt Management Office is scheduled to auction January 2028 and July 2031 gilts later on Wednesday, providing a further test of investor demand for British government debt, as per the report. (Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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