U.K. Government Bond Yields Could Stay Elevated Due to Fiscal Risks

Dow Jones
08/26

1317 GMT - Yields on U.K. government bonds could remain high through the remainder of 2026 due to U.K.-specific fiscal concerns, economists from Pantheon Macroeconomics say in a note. The markets could be underpricing the risk of renewed fiscal worries in the lead up to the budget statement on Oct. 28, the economists say. Gilt yields are expected to remain around current levels in the coming months, even if global bond yields fall, they say. Ten-year gilt yields rise 1.1 basis points to last trade at 5.008%, Tradeweb data show.

 

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