UK Bond Yields (Debt Interest) Hits Highest Since 1998

[Economy 53,090]

https://www.reuters.com/world/uk/uk-10-year-gilt-yield-hits-new-19-year-high-2026-09-10/

 

UK 20 and 30 year bonds hit their highest yield since 1998 while the 10 year hit highest since 2007 at 5.378%

 

The UK is strained to gain liquidity amidst high debt however this is part of a global bond sell off occiring all over the world amid high inflation expectations and high demand to raise money from investors which Governments are competing with AI companies borrowing binge creating a perfect storm of factors

 

High Sovereign debt

High borrowing levels

Worries about safety of debt

High inflation

Competition with private sector borrowing

 

Japans debt interest has also hit multi decade highs of 3% after sub 1% rates for many years. USA, Germany, Italy and France are also facing elevated rates

 

Canada despite positive news with the budget deficit coming far below expectations (likely due to high oil prices) is facing rising yields again as the market pulls everyone along with it showing even more relative safe heavens with Triple AAA ratings  are not fully immune to the sell off

 

[LOVEDRUG 11,341]

It is crazy that people are calling Burnham 'the new Liz Truss' because of this, as though he's made any proposals that would warrant such a reaction from the markets. The markets were a little shaky around his first few days, and probably will be next month around the budget, but this is really nothing to do with him.

Sometimes it seems like politicians and political commentators forget (conveniently) that wider macroeconomic trends are so often a factor and no, not all changes in bond yields are the result of minor policy announcements. Like I'm no Labour voter, but come on.

[Economy 53,090]

1 hour ago, LOVEDRUG said:

It is crazy that people are calling Burnham 'the new Liz Truss' because of this, as though he's made any proposals that would warrant such a reaction from the markets. The markets were a little shaky around his first few days, and probably will be next month around the budget, but this is really nothing to do with him.

Sometimes it seems like politicians and political commentators forget (conveniently) that wider macroeconomic trends are so often a factor and no, not all changes in bond yields are the result of minor policy announcements. Like I'm no Labour voter, but come on.

Yeah, people suck at determining what factors are global and what stuff is policy driven. Basically they just blame (or give credit) to whoever is President/PM/Chancelor etc at the time

 

Very over simplified

[Bronco 27,635]

Ngl, genuinely convinced the global economy has crashed but everyone is just choosing to 1984 the response to it

[gagzus 24,833]

8 hours ago, LOVEDRUG said:

It is crazy that people are calling Burnham 'the new Liz Truss' because of this, as though he's made any proposals that would warrant such a reaction from the markets. The markets were a little shaky around his first few days, and probably will be next month around the budget, but this is really nothing to do with him.

Sometimes it seems like politicians and political commentators forget (conveniently) that wider macroeconomic trends are so often a factor and no, not all changes in bond yields are the result of minor policy announcements. Like I'm no Labour voter, but come on.

Not to mention I think the fact we’ve been turning out new Prime Ministers to no end doesn’t help either. At this point people probably assume each prime minister is gonna do damage and dip out.

[Bronco 27,635]

30 minutes ago, gagzus said:

Not to mention I think the fact we’ve been turning out new Prime Ministers to no end doesn’t help either. At this point people probably assume each prime minister is gonna do damage and dip out.

Yeah we haven't had a full term government leader since David Cameron led the coalition. 

[Economy 53,090]

3 hours ago, Bronco said:

Ngl, genuinely convinced the global economy has crashed but everyone is just choosing to 1984 the response to it

What happened in 1984? Was there some kind of denial about it that in turn made it less severe?

[Bronco 27,635]

21 minutes ago, Economy said:

What happened in 1984? Was there some kind of denial about it that in turn made it less severe?

1984 the book. 

The party told you to reject the evidence of your eyes and ears

[Economy 53,090]

3 minutes ago, Bronco said:

1984 the book. 

The party told you to reject the evidence of your eyes and ears

Oh ok. Cuz i know there was an oil shock and recession in 1980s but rest of decade muddled along so i thought u were saying it recovered ok because people were in denial or something

[Bronco 27,635]

1 hour ago, Economy said:

Oh ok. Cuz i know there was an oil shock and recession in 1980s but rest of decade muddled along so i thought u were saying it recovered ok because people were in denial or something

Speaking of oil shock recessions.
The Iran backed Houthis have potentially just captured a key island in the Bab al-Mandab strait. 

So, that should be fun

[Bronco 27,635]

2 hours ago, Bronco said:

Speaking of oil shock recessions.
The Iran backed Houthis have potentially just captured a key island in the Bab al-Mandab strait. 

So, that should be fun

And the Saudi east-west pipeline has been hit by explosives.

Oh boy