‘Bond market tantrum risks’: Gilt traders brace for Labour leftward pivot as Starmer future uncertain
‘Bond market tantrum risks’: Gilt traders brace for Labour leftward pivot as Starmer future uncertain Economics Bond traders are bracing for the prospect of a surge in gilt yields as uncertainty over the future of Keir Starmer’s term in office could pave the way for a more left-wing successor. A Starmer defenestration could be just weeks away amid renewed scrutiny over the botched appointment of Peter Mandelson as Washington ambassador and [...]
IMF: Middle East war risks sparking government debt doom loop Markets Ballooning levels of government debt have left the global economy dangerously exposed to the aftereffects of the Middle East war, according to the International Monetary Fund (IMF), which warned a fresh wave of inflation could trigger a historic bond crisis. In its latest Financial Stability Report, the financial body said that countries’ inability to rein [...]
Bond traders: Bank of England gilt shake-up would ‘concentrate risks’ in market meltdown Markets Bank of England plans to reduce the bond market’s vulnerability to a Liz Truss-style crash would fail to improve financial stability and could make stress points worse, according to gilt traders and hedge funds polled by the Bank. Responses to the central bank’s plans to overhaul its regulation of the gilt repo market showed market [...]
UK bond markets are dangerously exposed March 31, 2026 Many of the forces shaping the bond market are beyond any single government’s control. The combination of higher inflation, weaker growth and increased debt issuance is driving a global repricing of sovereign bonds, says Helen Thomas The global bond market is entering an increasingly precarious phase, shaped by the early stages of what looks like [...]
Manic Monday: How Trump rocked global markets March 23, 2026 President Donald Trump sent global markets on a rollercoaster ride as traders were left stunned by mixed messages coming from the US administration and the Iranian regime. The Brent Crude oil price was trading around $114 per barrel before Trump said in a post on Truth Social that he was pausing strikes due to “productive” [...]
Borrowing costs soar to post-financial crisis high in blow to Reeves March 20, 2026 UK government borrowing costs have soared to their highest level since the Great Financial Crisis in 2008, with markets frightened by the state of public finances in the face of another global price shock. Gilt yields have inched up over the course of the week, with the ten-year gilt yield topping 4.9 per cent on [...]
Gilt yields – the hidden driver of house prices March 20, 2026 Everyone has assumed, understandably, that the two main factors influencing UK house prices are supply and affordability, but there is a third driver: gilt yields, says James Sproule James Carville, Bill Clinton’s political strategist, famously said if reincarnation was real, he wanted to come back as the bond market, “because then I can intimidate everyone”. [...]
Energy bills bailout speculation sparks bond sell-off fears March 17, 2026 An unfunded government intervention to subsidise household energy bills would trigger a gilt market rout likely to push the UK’s long-term borrowing costs to the highest they have been since 1997, bond investors and economists have warned. David Zahn, head of European fixed income at Franklin Templeton, told City AM that the prospect of ministers [...]
Government borrowing costs mount on fears of inflation spike March 9, 2026 Government borrowing costs have climbed on escalating fears that the war in the Middle East will push up inflation and leave interest rates higher. The 10-year gilt yield jumped by some 14 basis points on Monday morning as traders continue selling off their gilt holdings over mounting fears that interest rates could rise. Longer-term gilt [...]
FTSE 100 Live: BP tumbles on buyback suspension, Barclays profit boost February 10, 2026 Good morning and welcome back to the City AM liveblog. It was a rocky day for bond markets on Monday as political jitters rippled through the City. The 10-year gilt yield – a key benchmark for the government – rose as much as 10 basis points to 4.62 per cent following news that Scottish Labour [...]