Gilts Face Worst Month Since Liz Truss as Oil Spike Jolts UK Market

UK government bonds are headed for their worst month since the historic rout that led to the ouster of former Prime Minister Liz Truss, as the war in the Middle East drives up energy costs and fuels bets on interest-rate hikes.

An index tracking the performance of a conventional gilt portfolio is down almost 5% this month, set for its largest fall since an 8% slide in September 2022. The selloff has erased £108 billion from the market value of the benchmark, which stood at £1.63 trillion at Friday’s close.