UBS: UK government bond yields may remain high or even rise in the coming years

UBS economist Dean Turner stated in a report that forward rates indicate UK government bond yields may remain elevated or even rise further in the coming years. He noted that rising yields mean increased debt servicing costs, “which could soon become a headache.” Turner pointed out that the UK’s debt stock exceeds 90% of GDP, and the government deficit remains elevated. However, from a global perspective, when it comes to the sustainability of public finances, the UK is “neither in the best nor the worst position.” According to Tradeweb data, the latest yield on 10-year UK government bonds has risen by 2 basis points to 4.826%.