All articles tagged with #gilts
Early UK local-election results show Labour losing ground, but Prime Minister Keir Starmer says he will not quit and intends to serve out his five-year term, a stance that coincided with a modest pullback in gilt yields as investors weigh political risk and potential leadership shifts. Full results are still pending, and analysts warn the political drama could continue to influence markets and fiscal policy ambitions.
UK gilt yields jumped to their highest since 2008, with the 10-year around 5% and the 2-year about 4.6%, as energy-price pressures from the Iran conflict fuel inflation risks and expectations of further rate rises. The Bank of England is seen holding rates with little chance of cuts this year, pushing up borrowing costs for the government and keeping bond-market volatility elevated; February borrowing came in higher than forecast at £14.3 billion, underscoring the fiscal challenge amid the energy shock.