Analyst: UK bond yield rise exceeds Eurozone bond yield, possibly due to investor aversion.

date
20/07/2025
This week's data shows that inflation in the UK is rising and the labor market is weak, leading investors to start selling UK government bonds. This phenomenon highlights the unfavorable situation in which the UK economy is facing a combination of "economic slowdown and high inflation". XTB analysts stated in a report, "The rise in UK government bond yields is faster than similar bonds in other European countries". She believes that this indicates that investors may be avoiding UK government bonds. The combination of declining GDP, rising inflation, and a weak labor market in the remaining summer months of this year may further lag the performance of the UK bond market compared to other European countries.