Yields on benchmark 10-year UK government bonds jump following announcement
Blue chips up 3% as PM Cameron heads to Brussels
Financial services companies will find it "impossible" to remain in an independent Scotland even if it adopted sterling outside of a currency union, George Osborne has warned.
The Scottish government will be able to issue its own bonds from 2015 in a 'historic' devolution of borrowing powers, the Treasury has announced.
Sterling and gilt yields have jumped this morning after the latest Monetary Policy Committee minutes revealed Mark Carney and all other MPC members voted against more QE in July.
The UK's stagnating economy avoided a triple-dip recession today after initial estimates showed it expanded 0.3% in the first quarter of 2013.
Jim Leaviss, head of retail fixed income at M&G, said the UK is facing the prospect of a US-style fiscal cliff within the next five years.
Yields on UK government debt were climbing early this morning following Moody's decision to downgrade the UK's credit rating to Aa1, but equity investors shrugged off the news to send markets higher.
The yield on UK gilts has fallen to a new record low during trading today, as demand for safe havens picks up once again following indecision from the Fed over expanding its stimulus programme.
Pension funds are uninterested in the Chancellor's rumoured 100-year gilt issue and have called for other maturities to be issued insted.
The IMA £ Strategic Bond sector was more closely correlated than UK small-cap funds to the FTSE 100 last year, data has revealed.