- UK 10-, 30-year gilts headed for worst week in a year
- Investors remain worried about UK’s fiscal, inflation outlook
A hectic week for UK bond and currency traders came to an end with yields stuck near the highest levels in years and the pound at its weakest since late 2023.
Gilts and sterling fell again on Friday after a surprisingly strong US job report. Though the latest moves were in line with peers, they came on top of a brutal selloff in UK assets, which left long-term borrowing costs at levels last seen in 1998.
Concerns over the state of the UK’s stretched public finances combined with persistent inflation fueled a sharp market rout this week, and drew comparisons with a market meltdown two years ago that toppled Liz Truss’ administration.
Yields on 10- and 30-year gilts jumped about 25 basis points in five sessions, the most in a year. While