Reeves vows ‘action’ to meet fiscal rules amid rise in borrowing costs January 11, 2025 Rachel Reeves has said she will “take action” to meet her fiscal rules following turbulence on the gilt markets. Increases in the Government’s borrowing costs have sparked concern that the Chancellor will be unable to meet her debt and spending targets, requiring either tax rises or deeper spending cuts when she delivers a fiscal statement [...]
Rachel Reeves says fiscal rules ‘non-negotiable’ during bid to boost ties with China January 11, 2025 Rachel Reeves vowed to stand by her “non-negotiable” fiscal rules, as her mission to China was overshadowed by further turbulence in the gilt markets. Visiting bicycle-maker Brompton’s flagship Beijing store on Saturday, the Chancellor declined to give a running commentary on the financial markets in the UK, but said the rules she set for herself [...]
Rachel Reeves eyeing spending cuts in spring January 10, 2025 Rachel Reeves is considering cutting departmental spending as UK borrowing costs soar, despite risks it could “dampen” activity and “further dent anaemic” growth. The Chancellor is said to be eyeing further reductions to unprotected government departments’ budgets after she ruled out additional tax rises or more borrowing to avoid breaking her fiscal rules following the [...]
Pound sterling sinks and gilt yields rise after US jobs report January 10, 2025 The pound plummeted against the dollar while gilt yields came under further pressure after new figures revealed the continued strength of the US economy. According to the latest report on the US labour market, the world’s largest economy added 256,000 roles in December, accelerating from November and well ahead of economists expectations. Unemployment, meanwhile, unexpectedly [...]
Mortgage rates to rise on back of bond market turmoil January 10, 2025 Gilt yields influence the mortgage market through swap rates, the main benchmark for mortgage lending in the UK.
Pound endures week of misery amid gilt sell-off January 10, 2025 The pound came in as the worst-performing G10 currency for a second day running yesterday, as the gilt market continues to trade at decade-long highs. After spiking as high as $1.255 on Tuesday, the pound has since fallen to $1.229, its lowest point since October 2023. “What makes the current situation particularly noteworthy is that [...]
Chancellor Rachel Reeves looks for pro-growth measures amid market tumult January 10, 2025 Earlier this week the yield on the 30-year gilt hit its highest level since 1998 while the 10-year gilt rose to its highest level since 2008.
What’s behind the bond market turmoil? January 9, 2025 Although the jitters had calmed somewhat by Thursday afternoon, traders will be on high alert over the coming days.
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 [...]