The selloff in US Treasuries has now extended to the UK, dragging gilts into a downturn. This shift comes as inflation fears resurface, overshadowing recent investor concerns about AI and oil prices. The move has caught out those who had turned to fixed income for safety.
In today’s Markets Daily UK, the focus is on how hot US inflation data has impacted gilts, alongside a gloomy outlook from the UK’s homebuilding sector. The day’s events are being tracked on the Markets Today live blog.
After a brief period where AI and oil price fluctuations dominated market attention, inflation worries have re-emerged, leading to a sharp selloff in bonds. This has affected investors who had positioned themselves in fixed income assets as a hedge against market volatility.