30-year UK gilt yields are now up 10 basis points on the day as part of a global rise in yields, particularly the long end.
German 10s are up 6.4 bps to -0.300%, which is the highest since the start of the month.
The US is in a bear steepener as well with 2s up 3 bps and 30s up 6.5 bps.
These moves are filtering through the FX market via USD/JPY strength and general yen weakness. The euro has struggled but is bouncing now. The power and gas crisis has hit a new level today. Hiking rates certainly isn't the solution but it will affect wage negotiations and inflation expectations.
Overall, I'd say the chart of US 10s tells the story as well as anything heading into 2022. The inflation debate rages.
