Government bond yields rose across major markets on 1…
1 reactions
Government bond yields rose across major markets on 1 September as higher oil prices renewed fears of inflation. In the UK, the 30-year gilt yield briefly reached 5.89%, its highest level since 1998. 📈
Gilts are UK government bonds. When their prices fall, their yields rise; investors can demand higher yields when they expect inflation to erode the value of fixed payments.
Brent crude rose above $92 a barrel during the sell-off. The Guardian reported that Japanese 10-year yields reached 3%, while German and US benchmark yields also increased, pointing to a global market move rather than one confined to Britain.
If sustained, higher gilt yields raise the cost of financing government debt and can feed into broader borrowing conditions, including mortgage pricing. 🛢️ The immediate fiscal effect depends on future issuance and refinancing, while markets continue to assess the inflation outlook.
https://nutanica.com/UK_gilts
Gilts are UK government bonds. When their prices fall, their yields rise; investors can demand higher yields when they expect inflation to erode the value of fixed payments.
Brent crude rose above $92 a barrel during the sell-off. The Guardian reported that Japanese 10-year yields reached 3%, while German and US benchmark yields also increased, pointing to a global market move rather than one confined to Britain.
If sustained, higher gilt yields raise the cost of financing government debt and can feed into broader borrowing conditions, including mortgage pricing. 🛢️ The immediate fiscal effect depends on future issuance and refinancing, while markets continue to assess the inflation outlook.
https://nutanica.com/UK_gilts
1
| 9,000 mlx | |
| 7 | |
| 1 |
comments
The governments have lost control of the bond yields so the market it doing the job for them, which will punish the governments.
