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This report is from this week’s CNBC’s UK Exchange newsletter, which brings you expert insights on the most critical business stories in Britain. You can subscribe here.
Hello and welcome to this week’s CNBC U.K. Exchange. Gilts — short for gilt-edged securities, the term for U.K. government bonds — have sold off more aggressively than many other assets since the U.S. and Israel attacked Iran.
That reflects specific factors concerning the U.K. economy and its prospects, but as the history books show, investors demanding a premium to hold U.K. government bonds over other sovereign debt is not a new phenomenon.
One of the most alarming aspects of the sell-off in risk assets after the attacks on Iran, from a British perspective, has been how gilts — U.K. government IOUs — fell more sharply than bonds issued by any other G7 economy.
