RE: True worth of Capita is a lot higher9 Jan 2025 16:44
Banking giant Citi points finger at Reeves’s ‘inflationary’ Budget
The pressure on gilts “can be traced back to the October 30 Budget”, according to Citi.
The US banking group said: “It may have been a slow burn, but with global yields now higher, gilts are suffering from the consequences of the front-loaded fiscal loosening that was seen as inflationary, therefore slowing Bank of England cuts while also leaving very little fiscal wiggle room.”
The UK 10-year bond yield rose as high as 4.925pc in early trading, the highest since 2008, after rising sharply yesterday. The yield later fell and was is roughly flat on the day at 4.802pc. It was 4.597pc on Friday.
Though euro zone bond yields have also climbed, they have largely escaped the sharp sell-off in UK and US markets.