- We have seen steeper yield curves, that is a global phenomenon
- Cause of steeper yield curve reflects greater uncertainty on trade policy
- Steeper yield curve also reflects uncertainty on fiscal policy
It's good that he acknowledged things on the fiscal side as well. The public sector net borrowing data earlier today showed that UK borrowing surged higher to £20.7 billion in June this year. That's the second-highest June number on record, with only the Covid pandemic era beating it. Alongside higher yields and stubborn inflation, chancellor Rachel Reeves is going to be under heavy pressure ahead of the autumn Budget.
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