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2025-07-29 18:54:11
[The British pound is in crisis: Can the surge in yields trigger a "sell-off wave"?] ⑴ On July 29, the yield on the UK's 10-year government bond rose sharply in July, reaching a high of 4.70%, approaching the 2025 peak of 4.80%. ⑵ This level is close to the highest point since the global financial crisis of 4.92%, showing that the market's concerns about the UK's debt have intensified. ⑶ The scale of UK borrowing exceeded expectations, mainly because inflation has pushed up debt costs, even exceeding the forecast of the UK's financial supervisory agency. ⑷ Historical experience shows that during the bond sell-off in September 2022, the pound fell sharply, almost parity with the US dollar. ⑸ Recently, the pound has also shown a significant decline against safe-haven currencies such as the euro and the Swiss franc. ⑹ The continued rise in bond yields may further put downward pressure on the pound, and investors need to be alert to potential exchange rate risks.
