LONDON, Sept 10 (Reuters) - British 10-year gilt yields touched their highest level in more than 19 years on Thursday as prices extended a selloff on Wednesday when oil prices rose above $100 a barrel for the first time in six weeks, pushing borrowing costs up globally.
The 10-year gilt yield struck 5.295% at 0930 GMT, the highest since August 2007 and up 2 basis points on the day.
Two-year gilt yields rose 2 basis point from Wednesday's close to 4.742%, their highest since November 2023 while 5-year yields hit their highest since September 2023 at 4.828%.
The rise in yields came as the UK Debt Management Office released the result of an auction of £5 billion ($6.78 billion) of 4.625% May 2030 gilts , which drew a robust £16.2 billion in bids.
The 2030 gilt sold at an average yield of 4.786%, the highest for a gilt in that maturity range since October 2023.
On Tuesday, benchmark 30-year gilts sold at a syndication with the highest yield since at least 1998.
Susannah Streeter, chief investment strategist at investment provider Wealth Club, said the move higher in gilt yields largely reflected global trends.
"Steamy energy prices appear to be the trigger for these latest moves higher in yields, but there's been an underlying structural shift in the global flow of money for some time as some of the world's biggest institutional investors rotate away from (U.S.) Treasuries to seek returns in corporate debt," she said.
($1 = 0.7377 pounds)
Reporting by David Milliken, editing by Andy Bruce
Source: Reuters