Gilt yields – the hidden driver of house prices Opinion 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”. [...]
FTSE 100 Live: BP tumbles on buyback suspension, Barclays profit boost Markets 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 [...]
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, [...]
UK gilt yields suffer from dwindling investor appetite August 22, 2025 UK gilt yields have gradually moved higher over August, as investor concerns over government borrowing costs and wider economic conditions continue. While daily movements have been small, the monthly performance shows a notable sharp spike in yields, with long-dated gilts in particular recording a steep increase. UK yields are now 1.5 per cent higher than [...]
Investors: brace for a breakdown in UK gilts July 23, 2025 Because the UK government is politically unable to pass necessary fiscal reforms, a bond market crisis is now the most likely catalyst to force the essential but painful spending cuts required to stabilise the nation’s finances, say Peter Spiller and Emma Moriarty In the aftermath of the euro area debt crisis, Jean-Claude Juncker, then Prime [...]
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 [...]
S&P 500 slumps on open as Treasury yields remain elevated April 10, 2025 US markets have opened down after digesting the implications of Donald Trump’s 90-day pause on his sweeping tariffs. The Nasdaq opened down 2.7 per cent, while the Dow Jones fell 1.9 per cent and the S&P 500 opened 2.3 per cent down. Meanwhile, US Treasury yields have remained elevated, with the 30-year US Treasury sitting [...]
European bond rout worsens ahead of pivotal defence summit March 6, 2025 European bond yields continued to climb on Thursday as traders weighed expectations of higher borrowing from major European economies, which is expected to boost defence spending. German bonds suffered their worst day since the immediate aftermath of the fall of the Berlin Wall on Wednesday, after soon-to-be Chancellor Friedrich Merz laid out a bumper package [...]
UK gilts: After 30 years of calm, pension funds now must adapt to volatility January 19, 2025 After decades of calm, pension funds have little if any memory of more volatile times. But amid rising gilts, that now needs to change.
Rachel Reeves – “Gilty” as charged January 16, 2025 The verdict is in. The Gilt market has found the Chancellor Rachel Reeves guilty of reckless endangerment of the country’s finances. A large electoral majority led her to think the world would happily finance what she described in her Mais Lecture as the “smart and strategic state”. Sticking to fiscal rules is for nought if [...]