STOCKS | Oil Price Surge Lifts U.K. Gilt Yields on Inflation Concerns

U.K. gilt yields rose as surging oil prices pushed up inflation expectations and increased the chance of a Bank of England rate hike later this year. According to Jin10, U.K. 10-year gilt yields rose 1.3 basis points to 5.041%, while Brent crude gained 2.4% to $93.3 a barrel. U.K. inflation slowed to 2.6% in June from 2.8% in May, mainly because oil prices briefly fell in June after the United States and Iran reached a ceasefire agreement. Oil prices have resumed rising as conflict in the Middle East escalated again.