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2025-10-30 19:28:31
[UK Bonds' Heartbeat Accelerates, November Budget a "Trigger"] ⑴ ING strategists point out that UK bonds are far more sensitive to risk sentiment than German bonds. If the November 26th budget disappoints in terms of fiscal sustainability, gilt yields could surge. ⑵ Potential "trigger" combinations include: increased spending, new bond issuance, and inflation-related tax increases; any one of these could trigger a sudden loss of market confidence in UK fiscal policy. ⑶ Tradeweb data shows that the 10-year UK bond yield has already risen 4 basis points to 4.436%, with the most vulnerable part of the yield curve reflecting anxiety first, and short-term volatility is expected to remain high.
