FTSE 100 drops 0.79% and UK 30-year bond yield passes 6%

The "FTSE 100" index closed down 0.79% at 10,458.50 points, while the mid-cap "FTSE 250" index fell 178.58 points, or 0.74%, to 24,036.75 points, snapping a three-session winning streak.

The banking and financial services sector led the losses, as "Prudential" shares dropped 4.67%, "Standard Chartered" 4.65%, "HSBC" 4.36%, and "Barclays" 3.41%. News emerged that "HSBC" is moving to cut about half of its wealth management jobs in the UK.

"Pennon Group" recorded the largest drop, falling 20.05% to 361.20 pence, after the company announced a £550 million rights issue at a 35.5% discount to the market price, along with a dividend cut of about 30%.

The yield on the British 30-year government bond surpassed the 6% mark, a level not seen in nearly three decades. The UK swaps market is pricing in more than 100 basis points of rate hikes from the Bank of England before the end of next year, raising borrowing costs for the government, businesses, and households.

What do these terms mean?

"FTSE 100": The main index of the London Stock Exchange, comprising the 100 largest listed companies by market capitalization.

Government Bond (Gilt): A debt instrument issued by the British government to borrow money, and a higher yield means a higher borrowing cost for it.

Rights Issue: A capital increase allowing existing shareholders to buy new shares at a discounted price, used to raise liquidity.

Basis Points: A small unit of measurement for interest rates or yields, where 100 basis points equal 1%.