Treasury yields showed mixed movement Thursday after Kevin Warsh's initial Federal Reserve meeting. The 10-year yield was flat, the 2-year rose, and the 30-year fell. The Fed held rates steady, signaling potential future hikes and removing language favoring cuts, bolstering market confidence in Warsh's approach to inflation.
US Treasury yields edged higher Wednesday as investors awaited the first Fed policy meeting under new Chair Kevin Warsh. While rates are expected to hold steady, focus is on Warsh's communication and potential dovish signals, contrasting with 8 years under Jerome Powell. UK inflation eased slightly, causing gilt yields to fall.
US Treasury yields declined Tuesday ahead of the Federal Reserve's policy meeting, with easing inflation and interest rate hike expectations. A provisional peace agreement between Washington and Tehran also contributed to the fall.
Treasury yields fell slightly as investor optimism for a potential US-Iran war settlement persisted despite ceasefire tensions, with the 10-year yield dropping to 4.481%. Oil prices declined on peace hopes, while global bond markets rallied.
U.S. Treasury yields declined Friday after a volatile week driven by inflation worries. The 10-year yield fell to 4.564%, while the 2-year yield remained flat. Progress in U.S.-Iran talks was signaled, but disagreements persist over uranium stockpiles and the Strait of Hormuz.
UK government borrowing in April was £24.3bn, £4.9bn higher than last year and exceeding the £20.9bn forecast by the Office for Budget Responsibility. Higher spending on benefits offset increased tax receipts, according to the ONS.
Greater Manchester Mayor Andy Burnham faces a challenge in replacing Keir Starmer as PM, needing to appease bond markets despite past criticism. Rising borrowing costs and political instability make investors wary of his radical agenda, favouring Rachel Reeves's fiscal approach.
The IMF urged Britain to continue cutting government borrowing amid concerns over a Labour leadership challenge. It praised Chancellor Rachel Reeves for balancing deficit reduction and growth spending, upgrading UK growth forecasts.
The pound dropped 2% to a 5-week low at $1.336 amid expectations of a leadership challenge to UK PM Keir Starmer by Manchester Mayor Andy Burnham, sparking concerns over potential loosening of fiscal rules and increased borrowing.
UK government borrowing costs surge to an 18-year high and the pound falls amid market concerns over Andy Burnham's potential Labour leadership, citing fears of increased borrowing under his leadership.
UK government borrowing costs and 10-year bond yields have increased, while the pound has fallen against the dollar, amid market concerns over Andy Burnham's Labour leadership bid, which is perceived as potentially leading to increased borrowing and a shift to the left.
Housing Secretary Steve Reed defends Keir Starmer amid popularity concerns, urging Labour to focus on national change over internal conflicts, as Andy Burnham is tipped for a potential leadership bid.
More than 70 Labour MPs have called on Keir Starmer to resign.
The cost of UK government borrowing has hit a high not seen in decades as Prime Minister Keir Starmer faces mounting threats to his leadership and the oil price rises.
The cost of UK government borrowing has hit a high not seen in decades as Prime Minister Keir Starmer faces mounting threats to his leadership and the oil price rises.
The cost of UK government borrowing has hit a high not seen in decades as Prime Minister Keir Starmer faces mounting threats to his leadership and the oil price rises.
Rolling coverage of the latest economic and financial newsStarmer on the brink as cabinet ministers urge him to quitThe London stock market has opened in the red.The blue-chip FTSE 100 share index fell by as much as 1.1% at the start of trading, down 117 points to 10,152 points. That’s its lowest level since the end of March.Back at home, rising government borrowing costs aren’t helping either, with Prime Minister Sir Keir Starmer’s leadership under increasing pressure. The potential for a fiscally looser successor may be weighing on rate expectations, but the inflationary influence of higher-for-longer oil prices is likely to be the bigger driver. Continue reading...
Rolling coverage of the latest economic and financial newsStarmer on the brink as cabinet ministers urge him to quitNewsflash: UK government borrowing costs have risen at the start of bond market trading.Political uncertainty is gripping the markets, after Keir Starmer was urged to set out an orderly timetable for his departure ahead of this morning’s cabinet meeting.The market’s main concern here, and the reason for this Gilt underperformance, is twofold – firstly, that a new PM would shift to the left, and loosen/scrap the UK’s current fiscal rules; and, secondly, that doing so would exacerbate the UK’s inflation problem.With political uncertainty likely to persist for a while, and the fiscal rhetoric only set to ramp up, those considering buying the dip in Gilts may be minded to wait a while. Continue reading...
Darren Jones says the prime minister is ‘listening to colleagues’, and does not rule out PM announcing resignation timetableStarmer on the brink as cabinet ministers urge him to quitThere will be huge interest in what happens to UK government borrowing costs today. Graeme Wearden is covering this on his business live blog.Yesterday gilt yields (the cost of borrowing for the Treasury) edged up, in a move attributed to the political uncertainty at Westminster. Continue reading...
Bond yields creep higher on concerns about potential for political instability and rising inflationBusiness live – latest updatesUK politics live – latest updatesThe cost of government borrowing has crept higher as Keir Starmer’s crucial speech failed to dispel investor “jitters” in the bond markets over political instability combined with fears of rising inflation.The yield, effectively the interest rate, on the benchmark 10-year UK government bonds (known as gilts) rose eight basis points (or 0.08 of a percentage point) to 5% on Monday. Continue reading...
Rolling coverage of the latest economic and financial newsStarmer faces fight to survive as Streeting and Rayner eye leadership bidsGovernment bond yields are rising across the board this morning, although UK debt is leading the losses.US and eurozone borrowing costs have also pushed higher, on concerns that the lack of progress towards ending the Iran war will lead to higher oil prices, more inflation, and higher interest rates.Inflationary headwinds as a consequence of the conflict in the Middle East are weighing on a number of UK businesses. We have already heard from companies like Next, Asos, Sainsbury’s and WH Smith which have warned of higher costs. Now shares in Victrex have shed almost 6% today on the back of a profit warning. It anticipates weaker annual profit before tax of between £42m and £44m for fiscal 2026, falling short of estimates for £46.6m. First half underlying pre-tax also profit dropped by 18% to £19m.The UK mid-cap polymer maker says the Iran war will push up energy and raw material inflation. The company is responding by reducing headcount by 10% to cut costs elsewhere. Continue reading...
Rolling coverage of the latest economic and financial newsUK goverment borrowing costs have risen at the start of trading, lifted by inflation concerns and uncertainty over Keir Starmer’s future.The yield, or interest rate, on UK 30-year bonds is up around six basis points (0.06 of a percentage point) at 5.63%.The triggering of a leadership election, and a subsequent change in Prime Minister, leaves the GBP [the pound] and Gilts [UK government bonds] not only grappling with a ratcheting up of political uncertainty, but also being forced to face up to a likely more left-wing successor to Starmer.Such an outcome would, in all likelihood, lead to a substantial loosening of the ‘fiscal rules’, along with considerably higher government spending, and even higher taxes, possibly even including a manifesto breach in raising NI, VAT, or income tax. Continue reading...
