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UK Bond Yields Soar as US Data Sparks Sell-Off

1/13/2025

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Summary

Story summary

Robust economic data from the US has triggered a worldwide bond sell-off, hitting the UK hard, where bond yields have soared to their highest since 1998. The British pound has plummeted to a one-year low, sparking worries over rising government borrowing costs and looming spending cuts. Investors are anxious as inflation remains stubborn and growth stagnates, foreshadowing tough policy choices ahead.

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Story summary

Robust economic data from the US has triggered a worldwide bond sell-off, hitting the UK hard, where bond yields have soared to their highest since 1998. The British pound has plummeted to a one-year low, sparking worries over rising government borrowing costs and looming spending cuts. Investors are anxious as inflation remains stubborn and growth stagnates, foreshadowing tough policy choices ahead.