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Gilt Yields

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economy13 days ago•1 min saved

UK Budget Faces Fiscal Cliff as Bond Markets Demand Spending Cuts

The UK government faces a critical fiscal test on October 28, with former Bank of England chief economist Andy Haldane warning that the nation is on 'thin ice' due to high borrowing costs and sticky inflation. Prime Minister Andy Burnham and Chancellor John Healey must balance a pledge not to raise main taxes with the need to appease bond markets by cutting public spending. While the government seeks to fund defense and social care, analysts suggest reliance on smaller tax measures like capital gains tax and bank levies may be insufficient to stabilize the economy.

via CNBC|

#andy-burnham #economy #gilt-yields

economy1 month ago•1 min saved

UK Borrowing Costs Hit 28-Year High, Squeezing Budget Headroom

UK long-term borrowing costs reached a 28-year high on Tuesday, with the 30-year gilt yield hitting 5.89% and the 10-year yield rising to 5.21%, the highest since 2008. This surge, driven by global inflation fears and rising oil prices, has significantly reduced the fiscal headroom for Prime Minister Andy Burnham and Chancellor John Healey ahead of the October 28 Budget. Economists warn that the government may need to raise taxes or cut spending by approximately £10 billion annually to meet fiscal rules, as interest payments consume a larger share of national income.

via BBC|

#economy #fiscal-policy #gilt-yields