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UK’s Borrowing Costs Outweigh Germany’s by Most in a Year
The gap between yields on UK bonds and their German equivalents is the biggest in more than a year, amid contrasting expectations for interest-rate cuts and mounting concerns over Britain’s upcoming budget. The spread between 10-year gilt and bund yields has soared 25 basis points over the past month and is now close to two percentage points, a level last seen in August 2023. The UK yield is at 4.2%, near the highest in three months. The bulk of the widening came after Germany’s data showed private sector business activity slumped and inflation fell below 2% last month, leading traders to bet the ECB would ... (full story)