Timing of the essence as steepening UK gilt curve picks up pace

The recent surprising announcement by S&P on the rating of UK public debt crystallised concerns abou...

The recent surprising announcement by S&P on the rating of UK public debt crystallised concerns about the sustainability of the current pace of public borrowing. The major concern is the sheer volume of new gilts that will have to be issued to plug the gap in the budget shortfall over the coming years. To warrant a credit downgrade, these issuances will have to persist over a period of time. For the immediate future of gilts, the speed at which the numbers have deteriorated is perhaps the bigger concern, as opposed to the trajectory of public finances over the next four to five years. ...