Since the UK local elections in early May, UK yields have risen across the entire yield curve. Ten-year yields rose to levels of above five per cent, and 30-year yields rose to levels of just under six per cent. These yield rises are highly important. Every one per cent rise in ten-year gilt yields results in an increased fiscal cost of around £30 billion over the subsequent four years (This timing would cover the remainder of the current parliament), effectively wiping out UK Chancellor of the Exchequer Rachel Reeves’ fiscal headroom.  The May 7 local elections were a game-changer because…

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