Bond Traders Eye Fresh Gilts Selloff as Local Elections Loom
Adverts for how to vote in local elections in Birmingham, UK.
Photographer: Chris Ratcliffe/BloombergUK bond investors are shifting their focus from monetary policy to politics, with local elections next week seen as a potential catalyst for turmoil in government that could trigger a renewed selloff.
Long-dated UK gilts — a key barometer of fiscal and political risk — were heading for a weekly drop even after a rally ahead of the weekend. The 30-year yield remained near recent highs at 5.64% and is the highest of any major developed market.