"The long end of the gilt curve is starting to price political turnover risk around Keir Starmer. "It seems gilts are pricing in the exit of the Prime Minister. "When you see 30-year yields at levels not seen since 1998, that question is being embedded into pricing.""
"Rachel Reeves introduced fiscal rules designed to anchor credibility. The problem now is that markets are questioning whether those rules can be maintained unchanged if political pressure intensifies and borrowing costs remain elevated."
"UK long-dated borrowing costs surge to their highest levels since the late 1990s, with 30-year gilt yields pushing close to 5.8% and 20-year yields above 5.7%, according to LSEG data, as political uncertainty collides with renewed inflation pressure and fragile fiscal credibility."
"The move drags UK long-term debt back into territory last seen in 1998, a period of markedly different economic conditions, but one that now serves as a reference point for how far sentiment in sovereign markets can shift when confidence weakens."
UK long-dated borrowing costs have risen to the highest levels since the late 1990s, with 30-year gilt yields near 5.8% and 20-year yields above 5.7%. Political uncertainty is increasing alongside renewed inflation pressure and fragile fiscal credibility. The move has pushed long-term debt back to levels last seen in 1998, a reference point for how quickly sovereign market sentiment can shift. The CEO of deVere Group warns that markets are linking UK debt pricing to political continuity at the top of government. He also says fiscal rules focused on borrowing limits and spending discipline are being stress-tested as higher yields raise debt servicing costs and political pressure could challenge maintaining the framework.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]