By Yoruk Bahceli and Dhara Ranasinghe

LONDON (Reuters) -The mood music in some of the world’s biggest bond markets has shifted in October as concerns about hefty borrowing and sticky inflation ebb, prompting a rush back to the likes of British, German and Japanese debt.

UK government bonds, or gilts, battered earlier this year by fiscal concerns, have led the way. Ten and 30-year borrowing costs have fallen around 30 basis points each, set for their biggest monthly drops since late 2023, as their prices jumped.

Bond yields in Germany and even strife-laden France are set for their biggest monthly fall since April, when U.S. tariff turmoil bolstered safe-haven debt.

Japanese 30-year yields are set for the biggest monthly drop since August 2024 as fiscal concerns around Japan’s new prime

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