Gilt Traders Brace for Swings in UK's $3 Trillion Debt Market as Burnham Eyes June 18 Challenge
Updated
Updated · Bloomberg · Jun 11
Gilt Traders Brace for Swings in UK's $3 Trillion Debt Market as Burnham Eyes June 18 Challenge
2 articles · Updated · Bloomberg · Jun 11
Summary
$3 trillion of UK government debt is back in focus as investors from BNP Paribas AM, Neuberger Berman and Allspring warn a June 18 by-election could jolt gilts.
Makerfield is the trigger because a win by Labour's Andy Burnham could give him momentum to challenge Prime Minister Keir Starmer, opening a new layer of political uncertainty.
Bond managers say the market risk lies less in the vote itself than in not knowing Burnham's fiscal plans if he were to reach Downing Street.
Burnham has already tried to soften concern by rowing back comments from last year that appeared to downplay the role of bond markets, but traders still expect volatility.