The latest rise in UK gilt yields has revealed markets' concerns about the UK government's ability to manage its debt, as investors look for a culprit.
Yesterday (9 January) morning the pound fell to its lowest level against the US dollar in 14 months, hitting a low of $1.2239 before slightly recovering to $1.23. According to data from MarketWatch, 30-Year gilt yields stood at 5.34%, while 10-Year gilt yields were at 4.79%. The Treasury has stepped in to quell markets' concerns, rejecting claims that higher debt costs had limited Chancellor Rachel Reeves's headroom for borrowing and calling such worries "pure speculation". Russ Mould, investment director at AJ Bell, said the latest market turmoil signals a "massive loss of confi...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
