This week’s move in UK gilts have garnered much media attention, and even spurred a parliamentary statement by the Chief Secretary to the Treasury, Darren Jones, attempting to quell fears of a deterioration in UK debt sustainability or a shift in expected fiscal policy.
UK gilts have broadly tracked global bond market moves in recent months, with the 10-year yield up over 50bps over the past month alone to 4.85%, a similar rise to the move in the 10-year US Treasury.
This move may indicate some lingering concerns around the UK’s growth prospects and fiscal sustainability post the Autumn Budget, alongside perhaps “vigilantism” by some investors in the current global environment.
Turning to the week ahead, a busy UK schedule will shed some light on the economy and may influence gilts and sterling.
