The yield on UK 10-year government bond rose above 0.7%, hovering around its highest level since March 2020, amid hopes of quicker economic recovery and rising inflationary pressure, due to a gradual reopening of Britain's economy following the fast deployment of Covid-19 vaccines. Expectations of heavy US fiscal stimulus also boosted sentiment. Yields on two-year bonds jumped to their highest since April last year.
Historically, the United Kingdom Government Bond 10Y reached an all time high of 16.09 in November of 1981. United Kingdom Government Bond 10Y - data, forecasts, historical chart - was last updated on February of 2021.
The United Kingdom Government Bond 10Y is expected to trade at 0.78 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.98 in 12 months time.