Bond Market Jitters Reinforced by Hot U.K. Inflation Data

Gilt yields up again on above-consensus U.K. CPI…

Highlights

• Gilt yields up again on above-consensus U.K. CPI…

• … while U.S. yields remain elevated despite low “super core” inflation

• Equities hit records despite earnings downgrades

• August 1st planned tariffs would be the highest since 1910

Key Takeaways

• Bonds On The Defensive With U.K. Inflation Woes: In the overnight trade, bonds are modestly on the defensive again, led by the U.K. (10-year gilt yields up +4 basis points to 4.66%) as inflation ran hotter than expected in June (+0.3% MoM and to +3.6% YoY from +3.4% in May — consensus was +3.4%).