GBP under pressure as UK gilt yields top 5% – Rabobank
Rabobank notes that the British Pound is weakening amid funding concerns as 10-year gilt yields rise above 5% following the new UK cabinet's fiscal plans.
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Rabobank's Senior FX Strategist Jane Foley highlights that market reaction to Prime Minister Burnham's new cabinet and fiscal proposals has pushed 10-year gilt yields above 5%, weighing on Sterling.
The elevated borrowing costs signal investor unease over the UK's fiscal trajectory, contributing to GBP weakness. Foley's analysis points to sustained pressure on the currency as markets digest the government's spending plans.
The pound's decline reflects broader concerns about the UK's fiscal credibility, with gilt yields at levels not seen in years.
Source: FXStreet Forex News