Pound Sterling Price News and Forecast: GBP/USD sinks 1% as UK Gilt yields hit 1998 highs

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Pound sinks 1% as UK Gilt yields hit 1998 highs

The Pound Sterling (GBP) tumbles 1% on Tuesday as UK 30-year Gilts rose to 5.697%, its highest level since May 1998, due to fiscal concerns linked to the Autumn Budget. In the meantime, US economic data was mixed, following the release of Purchasing Managers’ Index (PMIs) reports from S&P Global and the ISM. GBP/USD trades at 1.3399 after hitting a high of 1.3549. Read More...

Pound Sterling plummets as soaring UK gilt yields raise fiscal concerns

The Pound Sterling (GBP) underperforms its major peers in a light United Kingdom (UK) economic calendar week. The British currency has tumbled as soaring UK long-term gilt yeilds have raised fiscal concerns. 30-year UK gilt yields surge to near 5.68%, the highest level seen since 1998. Read More...

GBP/USD falls toward 1.3500 amid uncertain Fed policy outlook

GBP/USD retraces its recent gains from the previous session, trading around 1.3520 during the Asian hours on Tuesday. The pair depreciates as the US Dollar (USD) gains ground, driven by persistent inflationary pressures in the United States (US), which heightened uncertainty over potential Federal Reserve (Fed) rate cuts. Traders will likely observe the August ISM Manufacturing Purchasing Managers Index (PMI) later in the day. Read More...

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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.