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Gilt yields.

ended 29. April 2026

Gilt yields closed above 5% yesterday, their highest close since the Global Financial Crisis. Why are yields soaring and what does this say about the markets' verdict on the UK economy and the current government? Also, what do higher gilt yields mean for annuities, borrowers and investors more widely? Any thoughts from any angle (and there are plenty, macro or more targeted), send them across ASAP as writing this story now. 

2 responses from the Newspage community

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Editor
Craig Fish
Director at Lodestone Mortgages
Gilt yields above 5% tell a clear story. The UK is uniquely exposed to this energy shock and markets know it. We have a decade of above-target inflation in our recent past, a government with almost no fiscal headroom, and a bond market that doesn't need much of a reason to get nervous. For mortgage borrowers, the path to cheaper rates has got longer and harder. Swap rates have spiked, lenders have repriced, and the cuts many people were counting on this year may not arrive. If your deal ends in the next six months, get advice now and lock something in. Don't wait for a better rate that may not come.
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Editor
Harry Goodliffe
Director at HTG Mortgages
Breaking 5% is a massive wake-up call! It shows the era of cheap debt isn't just ending, it's firmly in the rearview mirror. This surge, the highest since 2008 and even surpassing the 'mini-budget', is a clear vote of no-confidence from a market nervous about the UK’s energy vulnerability and the government’s fiscal headroom. While global pressures are high, the UK is being singled out, leaving the BOE and the Treasury with almost zero margin for error as borrowing costs for the country and households hit shocking new heights.