Global Market: UK bond yields hit one-month high as Middle East tensions boost rate-hike expectations

UK two-year gilt yield rose 11 basis points to 4.349 percent, hitting its highest level since June 11, after missile and drone exchanges between U.S. and Iranian forces in the Gulf stoked fears of energy supply disruptions. The geopolitical tensions triggered a rally in crude oil prices, raising inflation concerns and prompting markets to fully price in a 25-basis-point Bank of England rate hike in November, shifting from earlier expectations of a December move.