UK bond yields rise in tandem with European bonds as political turmoil and domestic debt concerns add pressure
UK government bond yields climbed in line with eurozone bonds, with heightened political turmoil in France—driven by doubts over consensus on the budget plan—acting as the main catalyst. Analysts from Deutsche Bank Research noted in a report: “French political developments will continue to weigh on market sentiment ahead of the confidence vote on September 8.”
Concerns over the UK’s high debt levels also put pressure on gilt bonds, as investors focus on the upcoming Autumn Budget Statement. Tradeweb data shows that the yield on the UK 10-year government bond rose by about 2 basis points, now quoted at 4.743%.
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