Concerns about U.K. fiscal policies could weigh on long-dated gilts, hindering their yields from falling considerably, eToro global market analyst Lale Akoner says. Investors are keen to find out the detailed fiscal and economic policies of the incoming government, after Keir Starmer's resignation from the prime minister role. "Speculation over who replaces Rachel Reeves at the Treasury adds another layer of uncertainty," Akoner says. Gilt investors could demand more compensation for fiscal risk, keeping long-dated gilt yields fairly high, she says. U.K. 30-year gilt yields last trade at 5.433%, higher than the German 30-year Bund yields at 3.416%, Tradeweb data show. (miriam.mukuru@wsj.com)
Dow Jones Newswires
Fiscal Jitters Could Weigh on Long-Term Gilts — Market Talk
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Concerns about U.K. fiscal policies could weigh on long-dated gilts, hindering their yields from falling considerably, eToro global market analyst Lale Akoner says. Investors are keen to find out the detailed fiscal and economic policies of the incoming government, after Keir Starmer's resignation…