Sterling and bonds plunge and credit card debts soar

THE pound fell to fresh lows, UK bonds came under severe selling pressure and there were signs that mortgage lending is tumbling in a move that could erode the strength of the housing market.

- Simon English and Michael Hunter

A mixture of official figures and City sentiment combined to ensure another jittery day on the markets.

Yesterday Goldman Sachs warned the UK would fall into recession at the end of this year and stay there until 2024.

In response, sterling today fell below $1.17 for the first time since March 2020. It is down 13% against the greenback this year.

UK government bonds are heading for their biggest monthly fall since 1994, the year of the “Great Bond Massacre”. Yields, which move in the opposite direction from prices, are at levels not seen since 2008.

Yields on two-years bonds went over 3% today.