European bonds surge as traders trim bets on interest rate rises
Government debt in UK and Eurozone on course for strongest day since 2023
Government debt in UK and Eurozone on course for strongest day since 2023

A surge in long-term interest rates and economic optimism has lifted the region’s lenders

Gilt market players call on government to cut spending and steer clear of inflationary tax rises

Bond investors and banks are seeking greater premiums on new financing as a precaution before lending

Inflation and ‘risk premium’ help keep yields elevated, say investors

Sovereign debt prices recover from historic lows after job openings figures come in below forecast

Government considers increasing issuance of Treasury bills as demand for longer-term bonds fades