Updated
Updated · The Guardian · Jul 13
UK 10-Year Gilt Yield Climbs 4 Basis Points to 4.91% as Burnham Weighs Autumn Budget
Updated
Updated · The Guardian · Jul 13

UK 10-Year Gilt Yield Climbs 4 Basis Points to 4.91% as Burnham Weighs Autumn Budget

3 articles · Updated · The Guardian · Jul 13

Summary

  • UK borrowing costs rose again, with the 10-year gilt yield up 4 basis points at 4.91%, pushing the benchmark closer to the 5% level.
  • That move comes a week before Andy Burnham is expected to become prime minister and as he considers an expanded autumn budget combining the fiscal statement with a spending review.
  • Burnham’s immediate challenge is expected to be setting spending priorities through the next general election and finding ways to fund them.
  • London equities were mixed: the FTSE 100 was up just 0.08% at 10,505, while Germany and France slipped 0.1% and UK homebuilders outperformed on reports Burnham could revive Help to Buy.

Insights

Can a new PM deliver ambitious social reforms when bond markets are already signaling a potential crisis?
Is UK financial turmoil a verdict on its new leader or a symptom of a worsening global economy?
Will Burnham’s housing revolution fix the affordability crisis or simply create new market distortions?