Uk 30-year yield tops US as Pressure Mountings on Government Borrowing

The 30-Iear UK Government Bond Offered a yield of 5.61% at Press Time. That’s 68 Basis Points More than the 30-YEAR US Treasury Yield Account to Data Source TradingView.

The Widening Gap Means That Market Is Demanding A Significant Premium to Hold UK Debt Versus Treasury Notes, A SIGN THAT INVESTORS ARE BECOMING INCREASINGly WARY ABOUT.

The UK Gilt Market (Bond Market) Has Taken on A Life of It Own, As The Country Faces Structural, Long-Term Economic Challenges that It Has Built Uver Uver Decdes; Yet, this is not a unquely british Issue. Japan, The EU, and The US HAVE ALSO SEEN BOND YIELDS Rise As Debt Burdens and Inflation Pressures Mount.

This Indebtedness of the Advanced World Supports the Bullish Case for Perceived Store-of-Value Assets Like Bitcoin

and Gold.

FOCUS ON UK Inflation ReportWednesday’s UK Inflation Report Is Critical For Bond Markets.

The Data is expert to show that bot the headline Consumer Price Index (CPI) and Core CPI Remened Well Above the 2% Target in July, accounting to Data. The Headline CPI is expert to be 3.7% Year-Over-Year (Up from The Previous 3.6%), While Core Inflation Is Forecast to Remain at 3.7% The Data Will Hit the Wires Just Weeks After the Bank of England Cut Rates to 4%.

Expectations for Sticky Inflation Couldn’T Have Could at A WORSE TIME, AS The GDP Growth Has Weaned and Unemployment Has Begun to Edge Higher from Secular Lows.

Repeat of 2022 Crisis?A Hot Inflation Report Could Only Worsen the Dynamics by Accelerating the Uptrend in Yields. This Calls for Both Crypto and Traditional Market Traders to Remain Vigilant for A 2022-Style Volatility in the UK Markets.

The Hardening of the 30-Year Gilt Yield, Representing the Long End of the Curve, Played A Big Role in the Liability-Driven Investment (LDI) Pension Crisis of 2022, Which. The Longer Duration Yields Now Testing The Upper Bound of A Long-Trend and Could Rise to 5.7%, The Highest Level Since May 1998.

Ldi strategies use leverage to Hedge Pension libilities. WHEN GIlt Yields Spiked in 2022, Collalateral Calls Led to A Mass Sale of Gilts, Creating A Feedback Loop that Threatened Financial Stability. That prompted the Bank of English to intervene with Emergency Purchases to Prevent a Systemic Crisis.

If Wednesday’s Inflation Report Runs Hotter than Expectoed, Gilt Yields Could Break New Highs, Putting Further Pressure on the Government and Raising The Risk of Anthher Ldi-Sti.