Bond vigilantes get ready to test UK pledge to balance the books ...Qatar

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Bond vigilantes get ready to test UK pledge to balance the books
Bond investors expect considerable belt-tightening when Rishi Sunak’s government unveils its economic strategy on Thursday - and will be poised to sell if pledges to slash spending aren’t met. The gilt market is already on edge, with confidence fragile after the shock of the Liz Truss administration’s mini-budget in September. The pressure is on the new government to trim what it can to curb borrowing over the coming years and limit a debt deluge that could test investor appetite. “The bond markets are expecting austerity,” said Michael Michaelides, a fixed income analyst at Carmignac. “If the government doesn’t deliver a significant amount of consolidation, then you can expect an adverse

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