UK government bond yields rise due to concerns over high oil prices and inflation.

The yield on UK government bonds is rising, as the market is concerned that disruptions in Middle East oil supply could lead to high inflation. An IG analyst stated in a report: "The expected rise in energy prices is likely to transmit to global inflation, potentially delaying monetary easing measures." Data from the London Stock Exchange Group shows that investors have fully factored in expectations of a 25 basis point rate hike by the Bank of England before July. Tradeweb data shows that the yield on 10-year UK government bonds has risen by 3 basis points to a new high of 4.843%, after touching a six-day high of 4.853% earlier in the market opening.