UK Bond Yields Surge as Fiscal Concerns Hammer the Pound
The British pound dropped over 1 cent in an hour as markets react to a sharp selloff in UK bonds.
• 30-year gilt yields spiked +21 bps to 5.44%
• 10-year yields rose +20 bps, 2-year +9.6 bps
Rumors swirl around Chancellor Rachel Reeves after her emotional U-turn on welfare cuts. Investors are rattled by signs the UK government may be pulling back from fiscal discipline.
