"The yield on 30-year UK government bonds climbed as much as 11 basis points to 5.785pc in Tuesday trading, moving back within striking distance of the 28-year peak reached last week. Ten-year gilt yields also pushed back above the psychologically important 5pc threshold, rising 10 basis points to 5.101pc. The sharp moves signal growing unease in financial markets over Britain's economic outlook as investors demand higher returns to lend to the Government."
"Rising gilt yields increase the cost of borrowing for the Treasury and can feed through into higher mortgage rates and business lending costs across the wider economy. The sell-off came as pressure intensified on Sir Keir's administration amid weakening growth expectations, stubborn inflation concerns and fears over the global impact of the Iran crisis. Sterling also came under renewed pressure, falling 0.5pc against the dollar to $1.35 while slipping 0.2pc against the euro to €1.15."
"London's stock market suffered a broad retreat as soaring oil prices weighed heavily on investor sentiment. The benchmark FTSE 100 fell more than 1pc in early trading before recovering slightly to trade 95.57 points lower at 10,173.86. Energy markets remained volatile amid continued deadlock between the United States and Iran over efforts to de-escalate the conflict. Brent crude prices climbed another 2pc to $106.53 a barrel, reinforcing fears that prolonged instability in the Gulf could trigger a fresh inflationary shock for Western economies."
"The renewed spike in borrowing costs will add to concerns inside Downing Street that Britain risks entering a dangerous cycle of weak growth, elevated inflation and rising debt-servicing costs. Investors have increasingly scrutinised Britain's fiscal position in recent weeks as economic forecasts deteriorate and"
Yields on UK government bonds rose sharply, with 30-year gilt yields climbing to around 5.785% and 10-year yields returning above 5%. The moves reflect increased investor unease about Britain’s economic outlook, leading to higher required returns for lending to the government. Higher gilt yields raise borrowing costs for the Treasury and can flow through to mortgage rates and business lending costs. Pressure intensified on Keir Starmer’s administration amid weakening growth expectations, persistent inflation concerns, and fears tied to the Iran crisis. Sterling fell against the dollar and euro, while the FTSE 100 declined as oil prices rose. Brent crude increased further amid US-Iran deadlock, heightening inflation shock risks for Western economies.
Read at London Business News | Londonlovesbusiness.com
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