UK 30-Year Inflation-Linked Yields Hit Highest Since 1998

The yield on long-dated inflation-linked bonds surpassed the highs seen during the gilt-market meltdown three years ago, the latest unwanted market milestone for the UK government.

The rate on 30-year linkers — often known as the real yield — rose to 2.56%, the most since 1998. That surpassed a high recorded in September 2022, when former Prime Minister Liz Truss’s economic plans triggered a fire-sale dynamic among leveraged pension fund strategies. Yields on conventional gilts also rose.