The broad selloff in UK markets amid fears of persistent inflationary pressures and higher government spending are prompting memories of the 2022 gilt meltdown, with analysts describing the moves as a small version of that crisis.
UK bonds slumped over the past days, taking the benchmark 10-year yield to the highest since August 2008 and the 30-year rate to levels last seen in 1998. The pound sank to the lowest since April and a measure of market sentiment hit the most bearish level in 14 months. British stocks tumbled, putting the FTSE 250 mid-cap stock index on track for its worst two-day drop since August.