>The 10-year gilt yield rose as much as 0.12 percentage points to 4.93 per cent in early trading, the highest level since 2008, before easing back to 4.84 per cent.
>UK borrowing costs have risen sharply as investors worry about the government’s heavy borrowing needs and the growing threat of stagflation, which combines lacklustre growth with persistent price pressures.
>“The economy is entering stagflation,” said Mark Dowding, chief investment officer at RBC BlueBay Asset Management.
>Chancellor Rachel Reeves left herself a slender £9.9bn of headroom against her revised fiscal rules in the Budget even after announcing a £40bn tax-raising package that aimed to “wipe the slate clean” on public finances.
>Increases in government debt yields have since put that budgetary wriggle room under threat. The level of bond yields is an important determinant of the budget headroom given its implications for the government’s interest bill, which exceeds £100bn a year.
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https://archive.is/dIcl9
>The 10-year gilt yield rose as much as 0.12 percentage points to 4.93 per cent in early trading, the highest level since 2008, before easing back to 4.84 per cent.
>UK borrowing costs have risen sharply as investors worry about the government’s heavy borrowing needs and the growing threat of stagflation, which combines lacklustre growth with persistent price pressures.
>“The economy is entering stagflation,” said Mark Dowding, chief investment officer at RBC BlueBay Asset Management.
>Chancellor Rachel Reeves left herself a slender £9.9bn of headroom against her revised fiscal rules in the Budget even after announcing a £40bn tax-raising package that aimed to “wipe the slate clean” on public finances.
>Increases in government debt yields have since put that budgetary wriggle room under threat. The level of bond yields is an important determinant of the budget headroom given its implications for the government’s interest bill, which exceeds £100bn a year.
!PING UK