Why this country's bond yields have been surging more than others after Iran attack

Surging oil prices have triggered a selloff in U.K. government bonds as investors price in higher near-term inflation and accelerate bets on Bank of England rate hikes. The move has pushed gilt yields higher and raises the probability of a quicker BoE tightening cycle, putting upward pressure on UK borrowing costs.

Analysis

Surging oil prices have triggered a selloff in U.K. government bonds as investors price in higher near-term inflation and accelerate bets on Bank of England rate hikes. The move has pushed gilt yields higher and raises the probability of a quicker BoE tightening cycle, putting upward pressure on UK borrowing costs.