FX.co ★ UK Gilt Yields Spike to 18-Year High

The yield on the UK’s 10-year gilt rose to 5.1%, its highest level since July 2008, as former Foreign Office chief Olly Robbins prepared to testify before the Commons Foreign Affairs Committee on the contentious appointment of Peter Mandelson as US ambassador. Robbins was dismissed for allegedly failing to inform Prime Minister Keir Starmer that Mandelson had not passed his security vetting. His testimony could prove politically explosive if he presents evidence that Starmer was aware of the issue.

At the same time, investors were monitoring mounting tensions in the Middle East, with a US–Iran ceasefire due to expire on Wednesday evening and peace talks scheduled to take place in Pakistan.

On the economic front, UK unemployment unexpectedly fell to 4.9% in the three months to February 2026, while wage growth slowed slightly less than anticipated. UK payrolls, however, declined by 11,000 in March—the biggest drop since November 2025—underscoring the persistent economic strains linked to the conflict in the Middle East.