It was an unhappy week for the UK

This week is not one in the experience of the bond market – with a world crop that increases among large economies As investors are worried about the inflation trajectory, yawning budget deficit and debt growth – the UK confidence was concerned about the country’s information.

The doubts arose due to the possibility of the Minister of Finance Rachel Rivz to balance the budget and reduce the national deficit, which in 2024 reached 4.8%, as well as the country’s debt in the amount of about 96% of GDP, on the last reading in July.

Reeves set on the opening Next autumn budget On November 26, on a broader economic background, sticky inflation and insufficient growth that create a riddle for the Bank of England.

The global bond yield stabilized on Thursday, and the profitability on the UK 30-year gilding in 5.582%as of 9 am in London. Economists commented that it was not time to panic, but he also noted that the UK is facing some nuanced problems.

“This week, it was a record issue of gilding, with a syndication that increased from £ 8 billion to £ 14 billion, so there were many put.

“People are worried about the deficit. People are worried about the political situation we see now. The UK budget is expected in October (but) pushed back to November. It also makes the Bank of labor rather difficult because the budget will come after the meeting (in November 6), and this is a full meeting of the prediction,” he said.

Fabio Balboni, Senior European economist HSBC, agreed that sticky inflation, which in July grew to hotter than 3.8% expectedcreates a dilemma for the Bank of England.

“There are significant problems in the market, and I think this happens with a combination of two factors,” Balboni said.

“Essentially, one thing that a certain resistance to inflation obviously makes it difficult to reduce the central banks, and some jurisdictions are more difficult, such as in the UK, for example, Boe Gov. Andrew Bailey reminded us that he would no longer cut more than 4%,” CNBC “that on Thursday” Early Review “.

“Then, on the other hand, you have fiscal problems, still a very large fiscal deficit, such as in the UK, with a very difficult solution that is emerged for the government in the autumn budget,” Balboni added.

Treasury UK on Wednesday disclosed What the government will provide the government’s budget plans for 2026. On November 26, faced with heavy pressure to resolve the fiscal puzzle for costs, taxation and borrowing.

Reeves already announced Plans for Big Tickets for National Health, Defense and EducationBut she pledged to borrow only for investment purposes, and daily expenses would be funded by tax revenues.

These fiscal rules, which she has repeatedly said that she would not violate, leaves taxes – or unpopular cuts for well -being – as a few options if she should focus on a balanced budget until 2029/2030, as promised.

Reivz has already conducted a tax raid on the British business, which means that workers, wealthy and banks can be on the hook because the government seeks to attract income.

Some warning analysts against panic over the cost of the UK borrowing and the future budget, saying that the Gilts market cannot be evaluated in isolation.

Bill Blaine, a market strategist and founder of London Shift Capital, based in London, warned in his “Morning porridge“The Bulletin on Thursday is that” You can’t analyze gilded risks in the UK without the global picture. “

“What is increasing in the markets of world bonds, it warns is an increase in the threat of inflation. The fact that is accompanied by a heavy load on debt (creating a risk of refinancing), geopolitical uncertainty and growth What stains modern market vulnerability. “