British bonds face selling, 30-year yields reach new highs since 1998.

The yield on long-term UK government bonds has risen to a 28-year high, with traders further betting that the Bank of England will raise interest rates. Following the public holiday on Monday, the market reopened and the yield on UK 30-year government bonds jumped 11 basis points to 5.76%, catching up with the trend of similar bonds globally. This movement comes after the escalation of hostilities in the Middle East. The escalation has cast a shadow over the prospect of the four-week ceasefire and has pushed oil prices higher. Interest rate swaps show that the market currently expects the Bank of England to raise interest rates three times this year, each time by 25 basis points; whereas last week's pricing only reflected two rate hikes, with a 50% probability of a third rate hike.