LONDON: British 10- and 30-year government bond yields hit their highest levels since the financial market turmoil of last March on Tuesday, extending recent price falls driven by expectations of looser fiscal and monetary policy in the United States.

Ten-year gilt yields rose almost 5 basis points to 0.621% and 30-year gilt yields rose similarly to 1.23%, tracking a rise in the yields of US Treasuries.

US bond markets expect the highest average domestic inflation over the next decade since 2014, while British 30-year inflation linked bonds are pricing in the highest rate of retail price inflation since September 2019, at 3.26%.

British 10-year and shorter inflation expectations are below levels set last year.