10-year gilt yields are up over 10 bps to kick start the day, jumping up to 4.54% as traders weigh the situation from earlier here. That’s putting fresh pressure on the pound as well with EUR/GBP pushing up by 0.5% to 0.8860 now – its highest since April 2023 – while GBP/USD is also down 0.5% to 1.3125 currently.
It’s all going wrong for Reeves and Starmer, in basically a damned if you do, damned if you don’t predicament. Amid mounting political pressures, they look to be abandoning one of their key manifesto pledges – that is to raise income taxes.
And markets are making sure they know what that means as gilts come under heavy pressure towards the final stages this week.
This article was written by Justin Low at investinglive.com.