UK borrowing costs have hit their highest level this year as the gold sell-off intensifies.

Unlock Editor's Digest for free

FT editor-in-chief Roula Khalaf picks her favorite articles from this week's newsletter.

The UK government bond sell-off intensified on Thursday as UK borrowing costs soared to their highest level this year on investor concerns about additional debt in Prime Minister Rachel Reeves' Budget.

The yield on 10-year government bonds rose 0.09 percentage points to 4.44%, previously exceeding 4.50%. The pound fell 0.8% against the US dollar to $1.286, the lowest in more than two months.

With government bond prices falling, Reeves said the Labor government's top promise was economic and fiscal stability, telling Bloomberg TV he had put in place strong fiscal rules and insisted there would be significant fiscal consolidation.

The move follows volatile trading on Wednesday as bond markets reacted negatively to a $28 billion annual borrowing increase outlined in Labour's first budget in 14 years. The Office for Budget Responsibility called this one of the largest fiscal unwinds in recent decades.

Ben Nicholl, senior fund manager at Royal London Asset Management, said some investors were concerned that the budget's assumptions were too optimistic and Reeves may have to raise more debt than expected.

“I think there are concerns that Labor will have to return to the bond markets in April to increase borrowing and raise taxes further,” he said.

The OBR noted high levels of uncertainty about the return on returns for a number of policies, including changes to non-state tax regimes, how interest is paid and inheritance tax paid on pension assets.

Figures from the Debt Management Office show debt sales this financial year will reach 300 billion, up from previous estimates of 278 billion and slightly above investor expectations.

Rising yields have pushed Britain's 10-year borrowing costs closer to a record high of 4.63% following Liz Truss' September 2022 mini-budget, which sparked a crisis in gold markets and sent the pound plunging to record lows.

suggestion

But many other investors dismissed the similarities, saying much of the market's movement was due to changes in expectations about Bank of England interest rates.

Vivek Paul, chief UK investment strategist at BlackRock Investment Institute, said this does not look like a repeat of the market reaction to the 2022 Budget.

Barclays CEO CS Venkatakrishnan told the Financial Times that the government had done a good job of balancing spending, borrowing and taxation to achieve its fundamental goal of growth.

While some business executives criticized the budget for its massive tax hikes, Venkatakrishnan said: We can all argue about little things. There is no perfect answer to this.

The OBR said on Wednesday that further borrowing was not fully anticipated by investors and that interest rates were likely to rise in the coming years.

JPMorgans Allan Monks said Labor's massive taxing, borrowing and spending decisions would boost near-term growth and inflation.

He added that the Budget changed the calculation of interest rate cuts.

The swaps market moved in line with prices over the next year with a slower rate of markdown. Investors are now expecting a third quarter point interest rate cut over the next 12 months. Before the budget they calculated four or five.

UK stocks fell as traders scaled back interest rate cut expectations. The FTSE 100 fell 0.6%. The more domestically focused mid-cap FTSE 250 index was down 1.5% after rising 0.5% in the previous session.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos