Gilt yields climb on Moody's warning

clock

Yields on UK gilts jumepd in early trading as investors reacted to the threat of a possible downgrade of the UK's AAA rating.

By 08:55am, the yield on benchmark 10-year gilts was up 0.022% to 2.15% amid the latest threat to the UK's credit rating. The fall came after Moody's assigned the UK with a negative outlook, meaning it thinks there is a 30% chance of a UK downgrade within 18 months. Moody's said it was primarily concerned with the "weaker macroeconomic environment, which will challenge the government's efforts to place its debt burden on a downward trajectory over the coming years". The ratings agency also put France and Australia - a region where many investors have been snapping up government bon...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot