• Momentum Global Investment Management flagged a surge in 30-year UK Gilt yields to 5.8% as of May 15, the highest level since 1998, signaling tighter long-end UK financial conditions.
• The move was tied to a worsening inflation outlook, with the Iran war pushing energy prices higher and reviving fears of second-round inflation pressures.
• Markets have largely removed near-term Bank of England rate cuts from pricing, with the analysis warning that further rate rises may be needed if inflation expectations become less anchored.
• UK political instability added to the selloff risk, with investors focused on potential leadership change and the prospect of weaker fiscal credibility.
• The note argued that sustained tighter financial conditions should eventually help bring inflation and real yields down, though the adjustment may not be complete.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Momentum Global Investment Management Ltd. published the original content used to generate this news brief on May 18, 2026, and is solely responsible for the information contained therein.