US bond market jitters spark UK economy recession warning
Analysts warn that rising US borrowing costs and a potential debt sell-off could trigger a severe recession in the UK. High yields on US Treasuries are creating global economic instability, threatening to increase mortgage and corporate debt costs.
Why it matters
The interconnectedness of global bond markets means US fiscal policy has direct, high-stakes consequences for the economic stability of other nations like the UK.
Share Facebook Share on Facebook X Share on Twitter LinkedIn Share on LinkedIn WhatsApp Share on WhatsApp Email Share on Email Add as a preferred source on Google The consequences of a US debt sell-off would be 'very bad' for the UK (Pic: AP) The UK economy could be plunged into a recession an "order of magnitude" greater than recent financial crises if America's borrowing costs continue to climb over the rest of the year, a group of leading City analysts have warned.
The US was forced to pay the highest interest rate on its long-dated bonds for a quarter of a century on Thursday, amid growing concerns over the country's gaping deficit and stickier-than-expected inflationary pressure.
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