The Bank of England moved Wednesday to halt a slide in British government bonds that posed a "material risk to U.K. financial stability," after political leaders' plans to slash taxes and increase borrowing spooked investors and sent the pound tumbling. The emergency intervention means the centra...
LONDON, Oct. 11 (Xinhua) -- The Bank of England (BoE) said on Tuesday that it will buy index-linked gilts, a type of United Kingdom (UK) government bond that tracks inflation, as "the beginning of this week has seen a further significant repricing of UK government debt." This enhance...
Investors will only buy such long-dated securities if they’re confident the government will still be honouring its debts in 50 years time! The UK has its own currency, of course, which in principle makes paying its debts a formality – unlike you, me, or a company, the government can s...
Sterling and British government bonds were little changed after the data. The opposition Conservative Party said Reeves had talked down the economy too much after Labour won the election by a landslide in July and weak growth was the result. Last week, the BoE trimmed its annual growth forecast...
UK annuity rates have risen over the last few years because they’re closely linked to interest rates. Annuity providers usually buy government bonds to create reliable returns for their customers. When interest rates go up, bond returns rise with them. That boosts annuity rates too. ...
(Reuters) - British government bonds rallied for a third day running on Friday, all but wiping out a sharp spike in yields since the start of the year that had briefly prompted comparisons with former Prime Minister Liz Truss' "mini-budget" crisis of 2022. Yields across the range of ...
However, if you have issued a high proportion of index-linked bonds and inflation materialises, the Government does not have the benefit of inflation eroding the debt stock. Conclusion The UK Government’s debt interest payments are poised to rise in future years to worrying levels due to facto...
Amundi UK Government Bond 0-5Y ETF (GIL5) TCO 0.14% (OCF 0.05%, Transaction 0.09%) iShares Up to 10 Years Gilts Index Fund (GB00BN091C65) TCO 0.15% (OCF 0.15%, Transaction 0%) UK Government bonds – index-linked Cheapest L&G All Stocks Index Linked Gilt Index Trust C (GB00BG0...
And obviously, the Labour government is only about sort of six months in office. It had a Budget with all of its kind of spending plans in October. And, you know, the line on this that lots of people are taking is that what’s happening now, this like drop in UK government bonds?
Planned tweaks to insurance capital rules will allow some funds to be shifted out of stolid government bonds into more productive assets. But the pensions fund assets are unlikely to go back directly into equity markets. The transfer of defined benefit funds is a de-risking exercise. Its main ...