Gilts touch 6% as the bond rout widens

Gilts lead a messy bond market

Britain crossed a line this week that no major economy had crossed since the eurozone crisis. This is Money reported on Thursday evening that the UK had become the first major economy in that time to pay 6 per cent to borrow, as a bond market rout pushed yields to their highest since 1998.

The selling was not confined to London. The Wall Street Journal described the global bond rout as getting messy, and in a separate piece argued that high government debt was adding fuel to the selloff. Another of its reports observed that the rout was deepening even as oil tankers returned to the Strait of Hormuz. The easing of one pressure, in other words, did not bring relief to bond holders. On Thursday the Treasury selloff flipped during a volatile session, and US stocks rose after the bond market turned in choppy trading.

At home, the politics followed quickly. Alex Brummer, writing in This is Money, warned that what he called Burnham's bond nightmare means bigger bills for already hard-pressed households. The Guardian reported on Friday that Burnham intends to pass a law scrapping the pension triple lock before the next election.

City A.M. reported that price pressures were hitting firms amid an uncertain outlook and fears of interest rate hikes. This is Money's weekly small-cap round-up said the bond rout was piling pressure on blue-chips, while Aim had a calmer week.

Wall Street, jobs and the weight of AI

Across the Atlantic, Friday brought a softer reading on hiring and a firmer stock market. The Wall Street Journal's live coverage of the September jobs report was headlined that stocks jumped as hiring softened, and its closing report had the Nasdaq leading the advance.

Underneath the index gains, the paper's writers found less to cheer. One piece, published late on Friday, argued that AI is squeezing out the rest of the stock market. Another, earlier in the day, described what it called an amazing stat that it considered a red flag for investors. On the opinion pages, the Journal examined what it termed the other threat to Federal Reserve independence.

One large name moved the other way. City A.M. reported that Nike shares fell, that the company faced ejection from the S&P 100, and that Mbappe was out. Three setbacks, one headline.

Further afield, the news was mixed. Deutsche Welle reported that a stock market scandal in Turkey had hit half a million investors. The South China Morning Post set out five figures investors are watching in China, running from stock losses to bond bets. In a separate piece, under the question 'DeepSeek effect?', it examined how China's quant funds are thriving amid tight regulatory scrutiny. The same paper reported that Clara Chan retains the helm at HKIC, the HK$62b state fund, as it aligns with Hong Kong's five-year plan.

London's company diary

The corporate news in London was heavier on warnings than on cheer. City A.M. reported that IG shares plunged after the group slashed its revenue forecast.

Wetherspoon's results drew two accounts. This is Money reported that soaring costs had sent profits tumbling and that the pub group was urging 'common sense' in the Budget. City A.M. said its boss had attacked Labour for 'high street dereliction' as profit fell. At Aldi, City A.M. reported that debt jumped by £100m as profit slipped at the discount grocer.

Capita faced scrutiny of a different kind. The National Audit Office has launched a review into its handling of the civil service pension scheme, City A.M. reported. This is Money described it as a fresh probe over bungled handling of the scheme.

There was deal activity too. Sky News reported that TPG has joined the race for a stake in Monzo, after talks over a £10bn bid came to an end. The Guardian reported that the founders of Feeld, the kinky dating app, shared in a record £3.8m dividend after sales jumped. Away from markets altogether, City A.M. noted that Arab nations had rallied behind Infantino, leaving Uefa isolated in its bid to oust the Fifa president.

For a week ruled by gilt yields, the company news kept to its own rhythm, and much of it was about costs and debt.