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UK Government Borrowing Costs Hit Their Highest Level Since 2008 as Inflation Fears Hit the Gilt Market
The 10-year UK gilt yield rose to 4.933% due to inflation fears and geopolitical tensions, with UK government borrowing hitting £14.3 billion in February, officials said.
- On Friday, British government borrowing costs surged to their highest since the 2008 financial crisis, with the 10-year gilt yield rising about 9 basis points to 4.933%.
- The U.S.-Iran war and a Strait of Hormuz blockade lifted energy prices, causing markets to shift from expecting BOE rate cuts to pricing in hikes and at least 4.25% this year.
- Market metrics reveal yields on the 10-year gilt jumped around 68 basis points and the 2-year gilt about 97 basis points in the 15 trading days since the conflict began, while UK government borrowings reached �14.3 billion in February.
- The U.K. Treasury's borrowing costs reached their highest since 2008 after the MPC voted 'unanimously' to keep rates, with Green warning 'Finance minister Rachel Reeves has built her fiscal framework around stability and credibility, but higher yields quickly translate into higher borrowing costs'.
- Long-Dated 20- and 30-year gilts show higher yields, supporting market stability, with some trading above 5% even before last year's sell-off triggered by speculation about Reeves.
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UK bond shock deepens as energy crisis hits borrowing costs - London Business News
UK government bonds are experiencing a sharp decline, with yields rising past levels not seen since the fallout that led to the ousting of former Prime Minister Liz Truss. This… The post UK bond shock deepens as energy crisis hits borrowing costs appeared first on London Business News
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Total News Sources12
Leaning Left2Leaning Right1Center2Last UpdatedBias Distribution40% Left, 40% Center
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
40% Center
L 40%
C 40%
R 20%
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