UK bonds suffered what it’s fair to call an egregious rout on Thursday.

The repricing found yields dramatically higher as gilts underperformed bunds (which were also sharply cheaper) and Treasurys (where the pressure was comparatively muted).

Plainly, some of the same generic inflation, “higher-for-longer” fears were in play, along with jitters around higher crude prices, but there was something else going on Thursday. The selloff was escalatory.

Note that Thursday’s selloff is readily discernible on a 12-month chart. The red box shows large, single-session, double-digit basis point moves.

Quarter- and month-end might’ve had something to do with it, but whatever the case, it was mirrored in bunds, which likewise suffered disproportionately compared to Treasurys.

Some of this could be a catch up. The selloff at the long-end of Treasury curve since the beginning of August is considerably more pronounced than the rise in gilt yields over the same stretch.

Recall that the Bank of England surprised markets by holding rates steady this month, in a split decision following what counted as favorable inflation data. Now, markets seem sure they’re going to hike again.