The yield spread between the UK's 5-year and 30-year government bonds has once again broken through the trend resistance level, with the 30-year yield hitting a new high of 5.62% this week.

⑴ The yield spread between the UK 5-year and 30-year government bonds has slightly steepened since reaching a low of 109 basis points on June 3, once again breaking through the trend resistance level of 114 basis points and is approaching the early May high of 118 basis points. The support level for the spread is at the retracement low of 109 basis points, with further support at the May 12 low of 100.5 basis points. ⑵ From a yield perspective, the 5-year yield successfully held the 4.50% level this week, followed by a slight pullback. Earlier this week, the 30-year yield hit a new high of 5.62%, approaching the densely traded area near 5.65%, before retreating somewhat. The lower support level for the 30-year yield is at the 5.56% gap, with further support at the 5.49% low. ⑶ From a market sentiment perspective, the continued steepening of the spread and its breakthrough of trend resistance reflect mounting concerns about long-term inflation and fiscal outlook, while the short end is constrained by relatively stable policy expectations. Whether the 30-year yield can continue to test the 5.65% area after reaching a new high, and whether the spread can break through the early May high of 118 basis points, will be key points to watch over the next few trading days.