Sterling Falls Toward $1.3215 as Global Bond Rout Drives Up Dollar and Gilt Yields

GBP/USD dropped 0.38% to trade around $1.3215 on Thursday as a worldwide sovereign bond sell-off lifted the greenback and propelled borrowing costs to multi-decade highs. The U.S. Dollar Index tested yearly highs near 101.80, supported by U.S. 10-year Treasury yields reaching between 5.340% and 5.358%. In the UK, 30-year gilt yields rose to 6%, marking their highest level since February 1998 amid state spending pressures and new benchmark issuance. Domestic sentiment softened further as UK Nationwide annual house price growth slowed to 0.8% in September from 1.6% previously.