"The Labour mayor's comments came as the yield, or interest rate, on UK government bonds rose to their highest level since early September. The yield on 10-year UK bonds edged five basis points higher to 4.726%. In a further sign of concern among international lenders about the UK's long financial credibility, the yield on 30-year gilt yields increased by 5.5 basis points to 5.54% a rise that pushed long-term borrowing rates towards 5.75% a 27-year high hit a few weeks ago."
"Kathleen Brooks, the head of research at the currency trader XTB, said: Political risks in the UK are once again spooking the UK's bond market. Ben Jennings on Andy Burnham and the Labour leadership cartoon The problem with Burnham's rhetoric is that the UK government needs to be very aware of the bond market, because we have a budget deficit, which has been exacerbated by Labour's current spending plans. His agenda could widen the deficit and push up borrowing cost"
A proposal to end UK dependence on foreign lenders includes nationalising utilities, a large council house building programme, higher taxes on top earners, a charge on expensive London homes and £40bn of extra borrowing. City investors warned that such measures could provoke another bond market crisis and raise borrowing costs. Yields on 10-year and 30-year UK government bonds rose to recent highs, pushing long-term rates toward 5.75%, levels not seen for decades. Existing budget deficits and political risk make markets sensitive to expansionary fiscal plans, potentially widening the deficit and elevating interest costs.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]