UK gilts above Truss ousting levels as Reeves faces 'more speculative' market marred by decisions of former government

Long-term real gilts at a 20-year high

UK gilts are running higher than they were when former prime minister Liz Truss was forced out of 10 Downing Street after her Mini Budget sent levels rocketing, which comes just a week on from the widespread selloff triggered by fears of Chancellor Rachel Reeves’ potential dismissal, and her mammoth task to restore the UK government’s debts.

Despite higher yields today (9 July), it was last week's swing which really shook markets, a selloff driven partly by a lack of faith in the Treasury's book-balancing abilities as Reeves faces limited options to address the economy's fiscal situation, choices marred by the decisions of the previous government. BoE warns UK growth outlook a 'little weaker and more uncertain' than it was in November Gilts are behaving incredibly sensitively to any drop of news, with the UK 10-Year yield above 4.6% at the time of reporting, and the 30-Year reaching 5.46% earlier today in response to the ...