UK treasury bonds led the decline in global government bonds on Tuesday. Since the UK market was previously closed due to holidays, it made up for the decline after reopening. The yield on the benchmark 10-year British Treasury rose 11 basis points to 5.25%; the yield on 30-year treasury bonds rose to 5.89%, the highest level since May 1998. At the same time, traders have increased their bets on the Bank of England's interest rate hike. Current market pricing shows that the Bank of England will raise interest rates nearly twice before the end of this year. There were no new obvious negative factors in the UK that day. Analysts more attributed the decline in the bond market to the escalation of the Middle East conflict over the weekend, driving up energy prices. Investors are already worried about the return of inflation and the financial situation in the UK. Mohit Kumar, Europe's chief economist and strategist at Jefferies International, said, “When the bond market is sold off, British treasury bonds often perform worse. When it comes to fiscal deficits, the UK is often the weakest link. The October budget is about to be announced, and spending cuts may still be difficult to achieve, so once there is any negative news driving up long-term bond yields, UK treasury bonds will often fail.”

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