New threat to Labour spending plans as UK long-term borrowing costs hit highest level since 1998
By Heather Stewart and Alex Daniel

Inflation fears fuelled by Iran war and renewed uncertainty over Starmer’s leadership prompt bond sell-off

https://www.theguardian.com/business/2026/may/05/uk-borrowing-costs-bond-yields-gilts-rachel-reeves

#Gilts #Bonds #Economics #Business #RachelReeves #Politics #UKnews #Governmentborrowing #Economicpolicy #Financialsector #Petrolprices #Budgetdeficit #Taxandspending #EconomicgrowthGDP #Motoring #UKcostoflivingcrisis #Inflation #Interestrates #HeatherStewart #AlexDaniel

UK’s long-term borrowing costs hit highest level since 1998

Rise in bond yields due to fuel prices and political stability concerns will eat away at Rachel Reeves’s fiscal headroom

The Guardian
UK’s long-term borrowing costs hit highest level since 1998

Rise in bond yields due to fuel prices and political stability concerns will eat away at Rachel Reeves’s fiscal headroom

The Guardian
Oil price jumps and markets slide after Trump warning to Iran

Brent crude rises 8% as US president vows to hit Iran ‘extremely hard’ over coming weeks

The Guardian
2 Bloomberg: The drama kicked off on Thursday after the #BankofEngland said it “stands ready to act” against a surge in #inflation, leading #traders to ramp up bets on an #interest-rate hike as soon as next month. #bonds #BOE #bondmarkets #Gilts
From the AI bubble to Fed fears: the global economic outlook for 2026

Analysts and investors voice caution about tech valuations and Trump’s influence on the US central bank

The Guardian
From the AI bubble to Fed fears: the global economic outlook for 2026

Analysts and investors voice caution about tech valuations and Trump’s influence on the US central bank

The Guardian
From the AI bubble to Fed fears: the global economic outlook for 2026

Analysts and investors voice caution about tech valuations and Trump’s influence on the US central bank

The Guardian

@ChrisMayLA6

There is also a timing issue - pointed out in the #ftweekend . It is at least plausible that #uk share prices will decline sharply in the near future as the #AI bubble bursts. It would make far more sense to encourage #nationalsavings and even bring back the ability to purchase #gilts over a #postoffice counter. However nobody will be lobbying for any of that!

@ChrisMayLA6

The irony is that a return to defined benefit schemes would ease the #uk government's supposed funding problem by increasing demand for lower risk assets such as #gilts ! Odd that #torstenbell cannot see this!

Bloomberg: #Gold hit a record high as the prospect of #Fed rate cuts and growing concerns over the central bank’s future gave fresh legs to the #preciousmetals rally. #Bond #yields climbed & #equities fell as #traders shunned risk. The yield on 30-year #gilts rose to the highest since ‘98 #markets