But yesterday’s move is minor by comparison. Not only that, but news has emerged which may explain some of the bond market’s fears. Yields on 10-year UK bonds are now at 4.48 per cent, compared to about 4.24 per cent just before Ms Reeves delivered her Budget, a rise of just under a quarter of a percentage point.
Holders of UK government debt sold a chunk of it, sending bond prices falling, which means the amount of interest they yield rises. The shift has been less dramatic than that following Ms Truss’s 2022 disaster, said Hal Cook, senior investment analyst at stockbroker Hargreaves Lansdown.
“In what was a huge move, the 10-year gilt yield moved from around 3.3 per cent a couple of days before that mini-Budget up to around 4.5 per cent a couple of days after it.”
More recently, bond yields had been rising since midSeptember, he said. “There are a few reasons for this, and the looming Budget has been one of them. The uncertainty surrounding this specific Budget had made bond investors nervous, with expectations of higher future borrowing in particular weighing on sentiment towards the attractiveness of UK government debt.”
On top of this, it emerged yesterday that the government spending watchdog, the Office for Budget Responsibility (OBR), got its sums wrong on how much wiggle room Ms Reeves would buy herself when she switched to a new measure of the nation’s debts.
هذه القصة مأخوذة من طبعة November 02, 2024 من The Independent.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة November 02, 2024 من The Independent.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Why Is Starmer So Against An EU Youth Travel Scheme?
The prime minister has once again been urged to agree to a limited scheme to allow young people to travel freely between the UK and the EU for the purposes of work or study, and has once again signalled his refusal to consider it.
Why home advantage has lost its sting in Test series.
“The tour is only a matter of hours old, but the wry thought occurs to me that reputations will almost certainly be destroyed in the next few months.”
North can't compete with south's individual X factor
Ex-Lions captain Sam Warburton has a theory why southern hemisphere teams have dominated the autumn internationals
Aimless Villa stagger to bore draw against Juventus
Aston Villa and Unai Emery have run out of ideas, far too early in the Spaniard’s previously exhilarating revolution.
Reds humble Real and Slot does what Klopp could not
A few weeks ago, it was possible to look at Arne Slot’s seemingly impressive start at Liverpool, adopt a sceptical tone and ask who they had really beaten.
Vauxhall's closure shows No 10 must recharge EV rules
Electric vehicles aren't selling in the volume anticipated and James Moore says government is right to order a swift review
Nationwide banks £2bn in takeover of Virgin Money
Nationwide has gained £2.3bn following its acquisition of Virgin Money, according to the firm’s half-year results.
Red Sea boat survivors were trapped in cabins, says diver
Two Britons who were on the yacht remain unaccounted for
Record snowfall leaves Seoul scrambling to cope
Transport chaos and power cuts hit city as two die on roads
Myanmar junta chief faces crimes against humanity charge for Rohingya deaths
Arrest warrant requested by International Criminal Court