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The UK 10-Year Treasury Notes Yield has surged to its highest level since 2008, and the downward trend is intensifying.
The United Kingdom market plummets, pushing Bond yields to a ten-year high, and ongoing concerns about inflation pressure evoke memories of the UK's government bond crisis in 2022, a comparison that is unsettling. The benchmark 10-year government Bond yield in the United Kingdom surged by 14 basis points to 4.82%, the highest since August 2008. The British Pound fell against all G-10 currencies, with a decline of over 1% against the dollar. The United Kingdom stock market also dropped. The cost of borrowing in the United Kingdom has recently soared, driving long-term Bond costs to their highest level since 1998. Although the recent increase is not as severe as the buyer strike caused by Truss's disastrous mini-budget two years ago, it still raises significant concerns.