UK Gilts Soar Above German Bunds for First Time Since Crisis

British 10-year gilt yields hit 4.925% in January 2025—their highest since 2008—now sitting materially above German Bunds at 2.841%. The widening gap reflects distinct fiscal and monetary paths: the UK's tighter fiscal position and independent rate trajectory versus eurozone disinflation and ECB caution. European sovereign rates are fracturing, not moving as one.