As Britain struggles with the increase in borrowing costs and the weakening pound, Rachel Reeves finds herself standing in the limelight as the new finance minister. The economic challenges posed this week are likely to alter Reeves’s plans for expenditure moving forward.
(10-year gilt yield, source: LSEG)
Profound increases in gilt yields coupled with the impending elections in the US greatly enhanced volatility within the market. The three- day graph of the pound presents a startling image showing the highest decline for two years closely matching the 2022 “mini-budget” which resulted in Liz Truss bowing out as Britain’s prime minister.
(GBP/USD Daily Price Chart, Source: Trading View)
Despite the volatility, this week’s market fluctuations have been milder, with no signs of the institutional pressures that prompted the Bank of England’s emergency bond purchases in 2022. Darren Jones who is Reeves’s deputy assured Parliament that the bond market is stable. “There is no need for any emergency intervention,” he stated.
Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
隨時隨地留意市場動態
市場易受供求關系變化的影響
對關注價格波動的投資者極具吸引力
流動性兼顧深度與多元化,無隱藏費用
無對賭模式,不重新報價
通過 Equinix NY4 服務器實現指令快速執行