Political Intrigue and Data Cap Rocky Week for UK’s Bonds

Gilts are heading for their worst week since April as the return of political risk and economic data surprises in the UK cap a turbulent spell for global bond markets.

A meltdown in Japanese debt early in the week rattled markets, followed by escalating tensions over Greenland. But as other bonds around the world recovered, gilts were hit by worries about the potential for a new leader to increase borrowing, and then took another knock Friday from data signaling a revival in the economy.