What is a gilt? And why should you care? January 9, 2025 Investors have been drawing comparisons to the bond market meltdown following Liz Truss's mini-Budget as well as the IMF bailout way back in 1976.
Bond tumult prompts comparisons with Britain’s 1970s debt crisis January 9, 2025 The turmoil engulfing the UK gilt market has shades of the country’s debt crisis in the 1970s which culminated in the then Labour government needing a bailout from the IMF, according to multiple financial heavyweights. Nigel Green, chief executive of of the the world’s largest independent advisory businesses, called the market bedlam, which has seen [...]
Pound sterling continues to sink as UK economy ‘clearly on very shaky ground’ January 9, 2025 Pound sterling has continued to sell off this morning, and UK government bond yields have ticked higher as UK risk assets remain under pressure. The pound fell below $1.23 against the dollar in early trade and is currently down 0.7 per cent against the dollar and 0.6 per cent against the euro. Meanwhile, the domestically [...]
Investors ‘are losing confidence’ in the UK economy January 8, 2025 The yield on the benchmark 10-year gilt, which reflects the cost of borrowing, hit 4.78 per cent on Wednesday afternoon, a post-financial crisis high.
Resurgent inflation fears drive global sell-off in government debt January 8, 2025 Government bonds suffered a major sell-off on Tuesday as fears about the potential persistence of inflation continued to build.
UK long-term borrowing costs hit highest level since 1998 January 7, 2025 The price of long-term government debt jumped to its highest level since 1998 on Tuesday as investors grew nervy about the UK’s economic prospects. The yield on the 30-year gilt, which reflects the price of government borrowing, hit 5.28 per cent on Tuesday in the wake of an gilt auction conducted by the Debt Management [...]
Strong governments must be prepared to upset the markets (a bit) November 12, 2024 The bond markets are a potent opposition, but governments must be prepared to take risks if they are ever to reap rewards, says Charles White-Thomson With a large majority and an election years away, the Prime Minister and Chancellor likely don’t feel the need to worry too much about what the electorate think. But one [...]
Reeves should be ‘thankful’ for avoiding Truss-style market crisis, analysts say November 4, 2024 Rachel Reeves should be “thankful” for avoiding the same fate as Liz Truss after the government's inaugural Budget triggered turmoil in the gilt market last week, analysts have said.
Gilts, sterling and FTSE 250 slump as markets digest Budget borrowing plans October 31, 2024 UK government borrowing costs have climbed to their highest level this year as investors digested the impact of the new government's first Budget.
Autumn Budget 2024: UK government bonds volatile as FTSE 100 dips October 30, 2024 Financial markets have wobbled in response to the new government's maiden Budget, with gilt yields jumping and the FTSE 100 ticking down.