UK Bonds, Pound Tumble as Traders Eye BOE Exit
- 30-year yield jumps to highest since BOE started operation
- Citi sees ‘big depreciation’ in pound if UK policies continue
Commuters cross the Millennium Bridge in view of Tower Bridge in London, UK.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The pound fell and UK gilt yields surged amid concern over the government’s plans to loosen fiscal policy and as traders braced for an end of the central bank’s market backstop.
On Thursday, 10-year maturities led the fall in gilts, with the corresponding yield surging as much as 21 basis points to 4.24%.