Bank of England sounds alarm on leveraged hedge fund bond bets Markets The Bank of England has sounded the alarm on international hedge funds snapping up record levels of UK government debt, warning that their highly leveraged bets leave Britain increasingly exposed to a bond market meltdown. In its biannual Financial Stability Report, the central bank said the large share of UK government debt held by risk-seeking asset [...]
The worrying bond market trend no one is talking about Markets Spiking interest rates on the UK government’s borrowing costs have set off a fresh wave of commentary on the health of Britain’s economy. Ali Lyon explores why it is only long-dated bonds where tremors have been most pronounced, and why the U has plenty of company. What will you be doing in 30 years’ time? [...]
Borrowing costs surge as gilts close in on 27-year low Markets Long-dated gilts plunged to a near 27-year low on Tuesday, bringing the UK’s fragile fiscal position into even sharper relief in the run-up to the government’s second Budget this Autumn. The yield on 30-year UK government bonds, which moves inversely to the price, jumped by as much as nine basis points to 5.63 per cent, [...]