Starmer future speculation sparks sell-off in long-dated bonds and pound February 5, 2026 Speculation over Keir Starmer’s future has unleashed a fresh round of market unease, with investors dumping the pound, UK equities and long-dated government bonds amid the political uncertainty. The gulf in price between the UK’s short- and long-term debt – known as the yield curve – reached its highest since 2018, in a sign investors [...]
‘Liz Truss-lite’: Is Japan in the midst of a sovereign debt crisis? January 22, 2026 Japan’s long-dated bonds suffered their worst sell-off this century on Tuesday. Ali Lyon asks whether the rout could spark a full-blown debt crisis? For decades, the world’s fixed income investors have been sucked in – and spat out – by an alluring trade on Japan’s government bonds. Secure in their belief that the securities’ unfathomable, [...]
Banking watchdog boss warns easing capital rules ‘highly risky’ October 22, 2025 The head of the UK’s banking watchdog has warned of high risk if the UK loosens its rules around lenders’ capital framework as the government pushes for economic growth. Sam Woods, the head of the Prudential Regulation Authority (PRA), said requiring banks to no longer set aside capital for top-tier sovereign bonds would “be equivalent [...]
IMF sounds alarm on soaring sovereign debt October 15, 2025 The International Monetary Fund (IMF) has urged governments to bear down on profligate spending after it found government debt was on course to reach 100 per cent of global GDP within the next five years. In its latest Fiscal Monitor report, the world’s preeminent financial institution sounded the alarm on developed and developing nations’ over-reliance [...]
Bond markets calm despite government benefits u-turn June 27, 2025 The cost of government borrowing has stayed flat on Friday morning despite the Starmer administration’s costly benefits U-turn blowing a £3bn hole in the UK’s precarious public finances. Gilts – the name for UK government bonds – opened in a muted fashion across the curve. 10-year yields nudged down two basis points (bps) in early [...]
Will the Bank of England’s quantitative tightening torpedo Reeves’ fiscal rules? June 5, 2025 Rachel Reeves is in a pickle. At under £10bn, the Chancellor’s self-imposed fiscal headroom – the Treasury’s wiggle room within its fiscal rules – is already wafer-thin by historic standards. And it is under intense strain, given a recent slew of billion-pound government spending pledges such as reversing winter fuel payments cuts and scrapping the [...]
UK small companies funds surge as government bonds sink June 3, 2025 Funds invested in tech stocks and UK small companies jumped significantly last month, while government bond-focused funds failed to make returns amid tremors in the Treasury market. Tech funds returned nine per cent during May, while UK smaller companies funds rose 7.3 per cent, making them the two best performing sectors, according to data from [...]
‘The most calls I’ve ever had’ – Why Japanese bonds have suffered surging yields May 27, 2025 The Japanese bond market has suffered one of its worst weeks in years. An auction on Japan’s 20-year government bond saw its bid-to-cover ratio, a measure of demand, sink to levels last seen in 2012, while the auction’s tail, the gap between average and lowest-accepted prices, widened to the longest since 1987, in another sign [...]
The great debt headache May 22, 2025 Debt, debt, everywhere but not a drop to… add to any well balanced investment portfolio. The world is awash with government bonds thanks to the debt piled up during the pandemic. But the increase in interest rates alongside the most significant bout of inflation for four decades has left investors in a quandary. What interest [...]
Government debt sale delayed over ‘Bloomberg system issues’ May 21, 2025 An auction of UK government debt was delayed on Wednesday after a Bloomberg system outage prevented traders from participating. In a statement the UK’s Debt Management Office (DMO) said: “Due to the ongoing market-wide Bloomberg system issues, the bidding window for this morning’s auction of 4 per cent Treasury Gilt 2031 is being extended.” A [...]