(Bloomberg) --

U.K. government bonds fell, driving the yield on 10-year notes past 1% for the first time in 18 months. 

The rate on benchmark gilts rose as much as five basis points to 1.003%, the highest level since the market turmoil in March 2020. They haven’t closed above 1% since May 2019. The move comes after some U.S. Treasury yields hit similar pandemic-era milestones. 

U.K. sovereign debt has been at the forefront of a global bond selloff in recent sessions after the Bank of England brought forward rate-hike expectations last week. Officials raised the prospect of raising rates as soon as November to contain a surge in inflation and said the case for tightening had been strengthened. 

Money markets currently see a first 15 basis point point hike in February, followed by a further quarter-of-a-percentage point rise to 0.5% in August. 

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