Leadership spat sends jitters through bond markets November 13, 2025 Jitters coursed through UK bond markets on Wednesday after a leadership crisis engulfing the Labour government triggered a jump in gilt yields, leading investors to warn that more political instability risked exacerbating the ‘moron premium’ applied to UK borrowing costs. Interest on 10-year gilts rose by three basis points, while the pound slumped to its lowest level [...]
Reeves and Starmer are now at the mercy of the markets November 13, 2025 A government elected on competence and stability may now gamble both to stave off internal revolt. For investors, the message is that British politics has not regained the calm that markets briefly hoped for, says Helen Thomas The markets once again have a starring role on the stage of political intrigue. Allies of the Prime [...]
Reeves may reassure the markets, but her political future is at risk November 6, 2025 Reeves’ speech was intended to steady nerves but instead will ignite the internal struggle that defines Labour’s next phase in power, says Helen Thomas With just over three weeks to go until the Budget, Chancellor Rachel Reeves has decided she can’t wait any longer. The pitch has to be rolled, the ground prepared, and the [...]
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 [...]
Gilt yields drop as Reeves crosses fingers to reap benefits October 22, 2025 Gilt yields have fallen as investors breathed a sign of relief after inflation came in below economist expectations, with top analysts claiming an interest rate cut this year is “very much in play” while adding that Rachel Reeves could be in luck. Gilts, the name for UK government bonds, have regained momentum in the UK [...]
What will Rachel Reeves’ budget pay for and where will the money come from? October 9, 2025 Rachel Reeves’ November budget is fast approaching, and steep tax rises are once again on the cards. Speaking at Labour conference last month, the Chancellor hinted at tax hikes by warning that she will be forced into “harder choices” by “harsh global headwinds”. To balance the books in accordance with her much-discussed fiscal rules, Reeves [...]
In Tokyo, Paris and London, political risk is on the rise October 9, 2025 Instability in Japan, France and the UK will have global consequences for the bond markets, says Helen Thomas For investors, the message is simple: political risk is rising. From Tokyo to Paris to London, governments face competing imperatives – fiscal credibility, economic stimulus and electoral survival. Sanae Takaichi, the new leader of Japan’s ruling LDP, [...]
Bank of England likely to slow down QT programme, Investec economist says September 15, 2025 The Bank of England’s Monetary Policy Committee (MPC) is likely to slow down its quantitative tightening (QT) programme over the next year, an Investec economist has said, as Britain’s central bank looks to quell concerns over rising gilt yields. “We doubt that the MPC will maintain the same pace of balance sheet reduction next year [...]
Reeves, beware the bond vigilantes: the dark knights of the City September 11, 2025 As UK 30-year gilt yields surge to record levels, Tim Focus warns Chancellor Reeves of the threat of bond vigilantes.
Rachel Reeves defends Labour against bond market selloff September 9, 2025 Chancellor Rachel Reeves has launched a defence of Labour’s economic record and blamed her Tory predecessors for the mass selloff in the gilt market despite growing criticism of the government’s fiscal policies. In a parliamentary session before MPs, Reeves said the government had made “fully funded and fully costed” plans to support its £190bn splurge [...]