FTSE 100 hits three-month low as surging bond yields hit risk appetite
EWU•The FTSE 100 fell 1.48% to 10,448.78 points, its lowest in three months, as global bond yields rose to multi-decade highs. The UK 30-year gilt yield reached 5.9773%, its highest since early 1998.
1. UK shares decline
The FTSE 100 fell 1.48% to 10,448.78 points by 1008 GMT on Thursday, heading for a fourth straight session of losses. The FTSE 250 dropped 1.23%.
2. Yields and rate outlook
The 30-year gilt yield rose to 5.9773%, its highest since early 1998, while the 10-year yield reached 5.449%, its highest since 2007. Traders were pricing in a 95% chance of a Bank of England rate increase at its November meeting.
3. Banks lead losses
Financials were the biggest drag on the FTSE 100, with banks down 2.9%. HSBC fell 3.2% and Standard Chartered dropped 2.5%; homebuilder stocks declined 2.9% after British house prices recorded their weakest annual growth since December 2025.
