Gilts tumble as PBR intensifies downgrade fears - papers

Laura Miller
clock

Gilt prices fell sharply yesterday as investors began to digest the Government's pre-Budget report and fears that Britain's credit rating will be downgraded intensified.

Yields on 10-year gilts jumped 14 basis points by close of trading as confidence in Government debt spiralled downwards, dragging prices down with it, the Independent reports. The gilts market is also pricing in fears Alistair Darling's forecasts for recovery are over-optimistic, and his spending cuts too little, to manage the huge public deficit. Further problems for the gilts market lie in the Chancellor's hazy promise to halve annual borrowing to 5.5% of GDP in four years with little detail about where the extra money will be found instead. Full story...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Burnham to stick with fiscal rules as power set to flow out of Whitehall

Burnham to stick with fiscal rules as power set to flow out of Whitehall

First speech since PM bid

clock 29 June 2026 • 2 min read
BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

Geopolitics in the driving seat

Michael Nelson
clock 25 June 2026 • 2 min read
Advisers highlight uncertain political and fiscal future after Starmer resignation

Advisers highlight uncertain political and fiscal future after Starmer resignation

Prime minister’s exit places chancellor Rachel Reeves’ position ‘inevitably’ under scrutiny

Isabel Baxter
clock 22 June 2026 • 5 min read