Insights

Weekly Market Commentary – 5th September

8 September 2025

This week falling bond prices pushed gilt yields up to their highest in more than 25 years. The UK is not alone. Long-dated bond yields have moved higher for most developed countries. The move was mostly reversed by the weekend. However, long-dated gilt yields have moved steadily higher this year, and this will be of concern to the government as it attempts to balance its spending commitments with its pledge not to increase income tax, NI and VAT. These taxes raise more than 60% of government revenue, so it has put itself in a difficult position.