UK Bond Rout Abates as High-Stakes Budget Week Draws to a Close
- Gilt 10-year rate has climbed about 20 basis points this week
- Moody’s warns of risks from borrowing plan in Friday report
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A sharp selloff in UK bonds that sent borrowing costs to their highest in a year abated Friday as a weak jobs report in the US boosted demand for global debt.
After gilts initially slipped a third day in a rebuke of Labour’s plans for higher borrowing and spending, the bond market stabilized as signs of deterioration in American payrolls boosted the case for interest-rate cuts to support the world economy.