Euro zone bond yields rise as Iran talks cancelled and ECB talks tough

UK gilt yields climbed to one-week highs on Friday, with two-year yields rising over 6 basis points to 4.25 percent, the highest since June 12, and benchmark 10-year gilt yields up more than 5 bps at 4.81 percent. The move was driven by cancelled Iran talks and tough ECB commentary, alongside higher-than-expected UK borrowing figures and political headlines. Interest rate futures priced in 31 bps of Bank of England rate hikes by year-end after the central bank voted 7-2 to hold rates steady at 3.75 percent.