Investors demand a risk premium on UK government bonds, with the 10-year yield rising to 4.922%, as focus shifts to next week's by-election.

汇通财经2026/06/08 12:32

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Tickmill Group analyst Patrick Munnelly pointed out in a report that due to political uncertainty and doubts over the government’s fiscal policy, investors are demanding an additional risk premium when purchasing UK government bonds. The market may shift its focus to the upcoming special election in the Macclesfield constituency next week, where UK leadership contenders and Burnham are vying for the parliamentary seat.
Munnelly stated that long-term UK government bond yields have remained high as investors seek compensation for fiscal and political uncertainty. According to Tradeweb data, the 10-year UK government bond yield rose by 2 basis points, most recently quoted at 4.922%.
From a trading sentiment perspective, the rise in long-term yields reflects a weakening market confidence in UK fiscal discipline, with investors requiring a higher term premium to hold long-term bonds. The by-election result may be viewed as a kind of test for the current policy direction; if the result leads to political changes, yields could rise further. Looking ahead, attention will be on the UK Chancellor’s budget statement and the ongoing impact of inflation data on the UK government bond market.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Updates with closing prices By Satoshi Sugiyama TOKYO, Oct 8 (Reuters) - Japanese shares fell more than 1% on Thursday, down for a second consecutive session, as investors paused after recent rallies, wary of the US rate outlook, higher yields and geopolitical tensions. The Nikkei 225 Index .N225 fell 1.42% to close at 69,042.11, while the broader Topix .TOPX slid 1.51% to 4,091.46. "Japanese shares had risen at a rapid pace through yesterday, and profit-taking has since picked up. That selling pressure appears to be continuing today," said Hiroki Takei, strategist at Resona Holdings. Japanese AI-related shares were subdued even after Samsung Electronics 005930.KS, the world's largest memory chipmaker, projected a nearly ninefold jump in third-quarter operating profit from the same period last year. Shares of chipmaker Rohm 6963.T lost 5.19%, the biggest percentage drag in nearly a month, while technology investor SoftBank Group 9984.T shed 4.28% and Tokyo Electron 8035.T dropped 2.48%. Concerns over US monetary policy remained in focus after Federal Reserve minutes released on Wednesday showed most participants signalling another rate hike by year-end. Market participants remained wary of French and Italian debt markets, with rising energy prices and fiscal concerns keeping sentiment fragile. Geopolitical tensions also dampened risk appetite, as increased attacks on shipping in the Gulf and the Strait of Hormuz fuelled concerns over Middle East oil supplies and pushed crude prices higher. Breadth was negative, with 165 decliners in the Nikkei 225 against 56 advancers and four unchanged. The largest percentage losers in the Nikkei were semiconductor silicon wafer supplier Sumco 3436.T, down 5.73%, followed by construction machinery maker Komatsu 6301.T, down 5.52%, and agricultural machinery and equipment maker Kubota Corporation 6326.T, down 5.42%. The largest percentage gainers were cybersecurity software company Trend Micro 4704.T, up 3.89%, followed by IT consulting firm Nomura Research Institute 4307.T, whic

Reuters•2026/10/08 06:54