The British Pound is under pressure today, failing to find support despite a dramatic surge in yields.

With the 10-year Gilt breaking above 5.10% and the 30-year yield hitting a level not seen since March 1998 (Bloomberg chart below), the market is sending a clear signal that should serve as a sobering reminder:

Convincing markets that fiscal stability will continue is a necessary condition to avoid a repeat of the 2022 “Liz Truss moment” that, among other things, pushed the UK pension system to the brink.

This is even more important at a time when external (non-UK) developments are intensifying the economic and financial headwinds.

#economy #uk #markets #bonds #gilts