Yields on UK 30-year inflation-linked government bonds have reached their highest level since 1998, climbing to 2.54%, surpassing even the peak seen during the gilt-market meltdown in 2022. Conventional 30-year gilt yields have also risen, reaching 5.60%, marking the highest level among major economies. The 10-year gilt yield increased to 4.74%, exceeding the worst levels recorded during the Liz Truss administration. The rise in yields reflects waning demand from pension funds and increased investor risk premiums on long-dated debt. These developments have heightened government borrowing costs and contributed to nervousness in UK debt markets. Treasury officials have struggled to manage the narrative amid these surging borrowing costs. Analysts note that persistent higher inflation is influencing the reaction of 10-year yields to monetary policy changes.