"Bond vigilantes are traders with a remit to pursue juicy prey, even if it means going hungry for a while. They manage funds that want a high interest rate from government lending."
"The UK has become infamous for succumbing to hysteria, especially after the Brexit vote and the farcical Tory response to Covid, culminating in Jeremy Hunt's 40bn national insurance pre-election giveaway in 2023-24."
"What these traders scout to find are countries that cannot control their annual spending. For those that are singled out, borrowing money to bridge the gap between spending and income costs even more now."
Rachel Reeves expresses concern over bond market vigilantes, who seek high interest rates from government lending. The UK faces political instability under Keir Starmer's leadership, compounded by economic challenges following Brexit and the Covid response. The country, along with Italy and France, is now viewed unfavorably by these traders, who target nations unable to manage their spending. The UK's deficit remains significant, raising borrowing costs amid global tensions, particularly with the conflict in the Gulf.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]