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UK bond yields rise significantly, raising concerns but not panic among investors

share-iconPublished: Thursday, January 09 share-iconUpdated: Thursday, January 09 comment-icon10 months ago
News sources:
REUTERS
UK bond yields rise significantly, raising concerns but not panic among investors

Credited from: REUTERS

  • UK bond yields have surged to 5.4%, the highest since 1998, prompting comparisons to the 2022 debt crisis.
  • Unlike the 2022 crisis driven by domestic policies, the current turmoil is largely due to foreign influences, especially U.S. fiscal policies.
  • The rise in yields poses significant challenges for Finance Minister Rachel Reeves, potentially limiting public spending and tax options.
  • UK pension funds are purchasing only 15% of gilt issuances, necessitating sustained high yields to draw in other investors.
  • Fixed-income market instability raises questions about the Bank of England's asset sales, with pressure to adjust their policy if high yields persist.

For more details, visit the full article at Reuters.


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