This week, UK bonds experienced significant declines due to the Labour government's budget announcement and plans for substantial bond sales.
The yield on 10-year notes increased by four basis points to 4.48% on Friday, which is the largest increase seen this year. Traders have shifted their market sentiment as they reassess expectations for interest-rate cuts in light of the government's commitment to additional spending. This has raised concerns about inflation and economic growth, resulting in a wave of selling in the bond market.