Bridgewater founder Ray Dalio: UK economy at risk of ‘debt death spiral’ January 21, 2025 Ray Dalio, founder of hedge fund Bridgewater Capital, warned that the UK economy was at risk of a “debt death spiral” following the recent bout of bond market instability. In an interview with the Financial Times, Dalio warned that the government faced the prospect of having to borrow more and more from financial markets in [...]
UK gilts: After 30 years of calm, pension funds now must adapt to volatility January 19, 2025 After decades of calm, pension funds have little if any memory of more volatile times. But amid rising gilts, that now needs to change.
What is driving the FTSE 100 surge? January 17, 2025 The FTSE 100 has hit a new all-time high today, with the index within touching distance of 8,500 for the first time. Since the start of the week, London’s main index has grown almost three per cent, outperforming the Nasdaq, the S&P 500, and the Dow Jones. The strong performance from the FTSE 100 came [...]
Rachel Reeves – “Gilty” as charged January 16, 2025 The verdict is in. The Gilt market has found the Chancellor Rachel Reeves guilty of reckless endangerment of the country’s finances. A large electoral majority led her to think the world would happily finance what she described in her Mais Lecture as the “smart and strategic state”. Sticking to fiscal rules is for nought if [...]
How ‘twin deficits’ have fuelled turmoil in the gilt market January 16, 2025 The sell-off eased slightly on Wednesday following positive inflation figures, but yields remain well ahead of where they were just a few weeks ago.
FTSE 100 rises and gilts recover but Reeves isn’t out of the woods just yet January 15, 2025 Chancellor Rachel Reeves was dealt some welcome good news after a surprise drop in inflation that saw gilt yields fall at the fastest pace in over a year on Wednesday, but some economists fear the development represents a temporary reprieve with inflation at risk of rebounding in the coming months. New figures from the Office [...]
UK gilt auction fails to roll back yield spike January 15, 2025 A closely watched sale of UK government debt failed to roll back the alarming rise in yields after the £4bn auction did not drum up significant interest for gilts. The Debt Management Office (DMO) reported that the 2034 gilts were sold at a yield of 4.808 per cent, compared with 4.332 per cent in the last [...]
Gilt yields stable ahead of crucial UK inflation data January 14, 2025 The yield on the 10-year gilt crept lower on Tuesday afternoon, leaving it on track to break six days of consecutive rises.
UK gilt auction oversubscribed as investors buy through market turmoil January 14, 2025 The auction comes ahead of crucial inflation data tomorrow.
Pound sterling suffers as traders pare bets on Fed rate cuts January 13, 2025 The sell-off comes after a bruising week for UK assets last week, with sterling falling over three per cent and gilt yields picking up to the highest levels in decades.