Investors worry about possible inflationary pressures from an anticipated increase in U.K. government spending, UBS Global Research strategists say in a note. The government announced a 15 billion pounds ($19.9 billion) defense investment plan for the current parliamentary term which ends in fiscal year 2030. The U.K. has the largest share of inflation-linked debt among developed economies, causing investors to demand a term premium on U.K. government bonds, the strategists say. (miriam.mukuru@wsj.com)
Dow Jones Newswires
Potential Increase in U.K. Government Spending Raises Inflation Concerns — Market Talk
Investors worry about possible inflationary pressures from an anticipated increase in U.K. government spending, UBS Global Research strategists say in a note. The government announced a 15 billion pounds ($19.9 billion) defense investment plan for the current parliamentary term which ends in fiscal…