BOND MARKETS COULD FORCE RACHEL REEVES ‘TO DO A SECONDARY BUDGET’, CITY INVESTOR WARNS
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✍️ A City investor warns that the UK's bond markets could force Chancellor Rachel Reeves to deliver a second budget if investors are disappointed by her fiscal plans.
👉 The bond markets could force Chancellor Rachel Reeves to deliver a second budget if investors are disappointed by her fiscal plans. 👉 David Zahn, the head of European fixed income at Franklin Templeton, warned that a sharp rise in bond yields could lead to a 'death spiral' for the government. 👉 Zahn suggested that a package of spending cuts and 'real tax increases' would bring down gilt yields and help the government's funding needs. 👉 City investors are hopeful that the chancellor will create more fiscal headroom for herself in the budget to help the government keep within its fiscal rule.
-- #RachelReeves #DavidZahn #KeirStarmer #LizTruss #JamesSmith #MichaelBrowne #London #politics
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