Exclusive: UK-specific investor concerns about Andy Burnham and John Healey’s fiscal plans are amplifying the impact of the global bond selloff on gilts, according to analysis by Bloomberg
@economics
Our economists say that while some of the recent hit to gilts is attributable to global moves likely due to expectations of Fed tightening, and much is due to the impacts of the Iran war on inflation, the UK situation is being made worse by rising risk perception likely due to anxiety over the coming budget
It means UK borrowing costs are rising relative to peers because investors remain unconvinced by Burnham and Healey’s plans, according to their analysis
In other words, rising UK borrowing costs can’t just be blamed on the global selloff
bloomberg.com/news/articles/…