Investing.com – United Returns Kingdom (TADAWUL:) Government debt, also known as securities, hit its highest level since 1998 on Thursday, while the British pound weakened against the dollar. This comes as investors express concerns about rising levels of government borrowing and the overall underperformance of the economy.
The 30-year yield hit 5.455% earlier on Thursday, while the 10-year yield rose to 4.921%, its highest level since 2008, before leveling off later in the day.
Meanwhile, the pound fell 0.6% to $1.2291 after falling to $1.2239 earlier in the session, marking its lowest point since November 2023, according to FactSet data.
Matthew Ryan, head of market strategy at Ebury, said price movements in UK government bonds had been intense, with investors particularly concerned about the outlook for the UK economy and the state of government finances.
Yields began rising on Tuesday after weak demand at an auction of 30-year bonds. Bond yields rise when prices fall. This weakness in the gold market reflects the recent rise in bond yields around the world, particularly among US Treasuries.
Inflation continues to persist in many parts of the world, causing investors to reassess their positions and sell bonds.
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