Gilt Yield Rise Raises Fears About State of U.K. Public Finances -- Market Talk

Dow Jones01-07 22:32

1432 GMT - The sharp rise in yields on U.K. government bonds, or gilts, in recent weeks is bad news for the government as it stokes fears about the state of public finances, Quilter Cheviot's Richard Carter says in a note. The prospect of rising inflation resulting from the incoming U.S. Trump administration's policies is leading to rising yields in the U.S., and consequently in the U.K. as well, he says. "The Bank of England remains cautious about slashing interest rates too aggressively, and the tepid demand from investors at the latest gilt sale underscores the uncertainty in the market." The short-term outlook is particularly unpredictable ahead of Trump's inauguration on Jan. 20, adding to the volatility, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

January 07, 2025 09:32 ET (14:32 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment