UK government borrowing costs fall to lowest level since July
https://www.theguardian.com/business/2025/oct/17/uk-government-borrowing-costs-rachel-reeves-bond-yield
Posted by Electricbell20
UK government borrowing costs fall to lowest level since July
https://www.theguardian.com/business/2025/oct/17/uk-government-borrowing-costs-rachel-reeves-bond-yield
Posted by Electricbell20
5 Comments
I have absolutely no idea how Rach is gonna recover from this latest, sickening blow
TL;DR. Bond yields have fallen as investors seek safer assets due to fears the US banking system will fall over and US/China trade war fucks with equities.
The government hasn’t done anything here to reduce borrowing costs, it’s just a consequence of bond prices rising as people buy more UK government bonds. It’s just benefiting from cheaper borrowing as a side effect of global risk aversion.
Lower yields look nice on paper (less interest to pay), but the reason they fell is bad news, it signals markets are worried about growth, stability, or risk in equities.
Basically: yields down = cheaper debt but for the wrong reasons.
Since JULY? My god thats….3 months?! Blimey! What a turnaround.
Does this have anything to do with the whole custard cream debacle?
Because chancellor has announced tax rises.
Don’t get excited. We’re choosing between bad outcomes here…