UK 30-year gilt yields just hit 6% — highest in 28 years.
This isn't some technical blip. When your long-term borrowing costs spike like this, it's the bond market sending a message: we don't trust your fiscal path.
The UK budget triggered this. Markets looked at the spending plans, the debt trajectory, the growth assumptions, and said "not buying it."
Reminder: sovereign debt crises don't announce themselves with sirens. They start quietly with rising yields, then accelerate fast when confidence breaks.
The UK isn't there yet, but this is how it begins — slowly, then all at once.
Watch the gilt market. It's telling you something important about fiscal credibility and what happens when governments ignore bond vigilantes.
This isn't some technical blip. When your long-term borrowing costs spike like this, it's the bond market sending a message: we don't trust your fiscal path.
The UK budget triggered this. Markets looked at the spending plans, the debt trajectory, the growth assumptions, and said "not buying it."
Reminder: sovereign debt crises don't announce themselves with sirens. They start quietly with rising yields, then accelerate fast when confidence breaks.
The UK isn't there yet, but this is how it begins — slowly, then all at once.
Watch the gilt market. It's telling you something important about fiscal credibility and what happens when governments ignore bond vigilantes.