Long-Dated Gilt Yields Set for Largest Drop in Two Years

Yields on long-dated gilts opened the week at their highest level in almost three decades. Market participants now expect those yields to record their largest weekly decline in more than two years.

U.K. government. Long-dated gilts are debt instruments with maturities typically exceeding 15 years. Traders have adjusted positions in response to incoming economic data and central-bank signals.

Yields measure the effective interest rate investors demand to hold government debt. Higher yields raise the cost of new borrowing for public finances. K. debt-servicing costs if sustained through the end of the week.