France and UK Bond Yields Reach Highest Levels Since 2008 Amid Iran War Disruption
Updated
Updated · Barron's · Apr 28
France and UK Bond Yields Reach Highest Levels Since 2008 Amid Iran War Disruption
14 articles · Updated · Barron's · Apr 28
French and UK government bond yields have risen by 0.5 and 0.7 percentage points, respectively, as Strait of Hormuz disruptions spike energy costs and inflation across Europe.
The European bloc has spent $32 billion more on oil and gas, with the ECB raising food inflation forecasts and warning of prolonged elevated prices. Political resistance to austerity is growing, especially in France.
While the ECB is now better equipped to contain a eurozone debt crisis, over-indebted countries face recession risks. The UK, with its own currency and central bank, has more policy flexibility than France or Italy.
With UK borrowing costs highest in the G7, is Britain becoming permanently riskier for investors?
Could the Bank of England's expected rate hikes push the UK's fragile economy into a recession?
How will soaring government borrowing costs affect public services and the average UK household?
Have UK pension funds truly been fortified enough to withstand this new bond market storm?
Are today's 5% gilt yields a golden opportunity for investors or a dangerous trap in a volatile market?
As oil prices surge from the Iran conflict, what can the UK do to end its energy vulnerability?