UK Sovereign

Index-linked Gilts took a hit on Thursday after a House of Lords committee concluded that the UK government should correct an “error” in the Retail Prices Index calculation — a tweak that would cause “material detriment” to bondholders.

Gilt yields jumped on Wednesday morning as investors bet that the UK government’s record defeat in its parliamentary vote on its Brexit deal on Tuesday would lead to a softer Brexit — or even no Brexit at all.

Trading platform operator Tradeweb has received regulatory approvals to operate trading venues from Amsterdam as it solidifies its preparations for Brexit.

UK government bonds have been playing their traditional role as a haven trade for sterling investors amid the Brexit turmoil of the last 2.5 years. But some investors warn that this could change if the Labour Party wins a general election, as a ‘Corbyn premium’ will push up Gilt yields.

UK government bonds have been playing their traditional role as a haven trade for sterling investors amid the Brexit inspired turmoil of the last 2.5 years. But one possible outcome, the likelihood of which has grown this week — a Labour Party victory in a general election — could push up Gilt yields because of what investors have dubbed the ‘Corbyn premium’.

Rising hopes that the UK can escape the nightmare of Brexit are misplaced. A second referendum would carry huge risks, and even if the outcome were Remain, it would leave an unstable Britain with a damaged relationship with the rest of the EU.

The UK Debt Management Office has chosen the tenor for the final syndication of its 2018-2019 financial year, as Gilt yields rallied this week amid confusion over how the UK will eventually leave the European Union.

Mizuho International, the London securities and investment banking arm of the Japanese banking group, has cut jobs in its capital markets business over the past week, and among those leaving is a senior DCM banker.

Sterling investors poured into the UK Gilt market on Tuesday after Theresa May’s Brexit plans received multiple defeats in parliament. They will "remain cautious" ahead of the crunch vote on the Brexit deal on December 11, according to buy-side analysts.

The UK Debt Management Office has chosen the tenor for the final syndication of its 2018-2019 financial year.

The deal agreed by Theresa May, prime minister, for the UK's exit from the European Union has brought issuance of sterling bonds, equity and loans to a juddering halt, which could extend into 2019. Nigel Owen reports.

The public sector market for sterling benchmark issues has shut down earlier than usual as a result of a plunge in Gilt yields — caused by concerns surrounding the UK’s exit from the European Union — which has made new issues unattractive for investors.