FX.co ★ FTSE 100 Falls as Bond Yields and Oil Prices Rise

London’s FTSE 100 extended its losses from the previous session, slipping 0.3% to 10,760 points on Wednesday, its lowest level in two weeks. The global bond selloff continued for a second day, while oil prices climbed further amid intensifying conflict in the Middle East. UK government debt was among the worst affected, with 30-year gilt yields rising to their highest level since 1998 and 10-year yields reaching their highest since 2008. The combination of higher borrowing costs and persistent inflationary pressures is expected to sharply constrain the Chancellor’s fiscal headroom and complicate efforts to stay within the government’s self-imposed borrowing limits. Oil majors Shell and BP both advanced around 0.3%. BP also appointed Ian Tyler as its new chair, following the unexpected departure of Albert Manifold earlier this year. Elsewhere, Ryanair lowered its full-year 2027 traffic forecast and cautioned that European short-haul airfares could rise “materially” if elevated oil prices are sustained.