The next few months will be a major test for financial markets across the globe as it digests the tariff news emerging from the US. Usually, UK government bonds would provide a safe haven, but these are not usual times. In the immediate aftermath of US President Donald Trump’s announcement, gilts have been down, as
The UK fixed income market is experiencing volatility amid economic and fiscal challenges. Gilt yields remain elevated due to lingering inflation, currently at 2.5 per cent, and weak GDP growth – 0.1 per cent in November 2024. A cautious Bank of England has also pared back on the number of rate reductions it plans to
Bond market turmoil earlier this month drove the UK 10-year gilt yield up to 4.9%, the highest figure recorded since 2008. The gilt yield has since dipped slightly to 4.6% as the government has sought to reassure a jittery market, but Chancellor Rachel Reeves has faced pressure to announce tax and spending changes in response