Home Fear & Greed Pools Wallets Dictionary Advertise Facebook Twitter Telegram Reddit Youtube
Market Cap:
24h Vol:
Cryptocurrencies: 13284
Markets: 100679
CoinInsight360.com logo CoinInsight360.com logo
ENG
EST
RUS
TUR
DEU
CHI
KOR
ITA
USD
USD
AED
AFN
ALL
AMD
ANG
AOA
ARS
AUD
AWG
AZN
BAM
BBD
BDT
BGN
BHD
BIF
BMD
BND
BOB
BRL
BTN
BWP
BYN
BZD
CAD
CDF
CHF
CLF
CLP
CNH
CNY
COP
CRC
CUC
CUP
CVE
CZK
DJF
DKK
DOP
DZD
EGP
ERN
ETB
EUR
FJD
FKP
GBP
GEL
GHS
GIP
GMD
GNF
GTQ
GYD
HKD
HNL
HRK
HTG
HUF
IDR
ILS
IMP
INR
ISK
JMD
JOD
JPY
KES
KGS
KHR
KMF
KPW
KRW
KWD
KYD
KZT
LAK
LBP
LKR
LRD
LSL
LYD
MAD
MDL
MGA
MKD
MMK
MNT
MOP
MRU
MUR
MVR
MWK
MXN
MYR
MZN
NAD
NGN
NIO
NOK
NPR
NZD
OMR
PAB
PEN
PGK
PHP
PKR
PLN
PYG
QAR
RON
RSD
RUB
RWF
SAR
SBD
SCR
SDG
SEK
SGD
SHP
SLL
SRD
SSP
STD
STN
SVC
SYP
SZL
THB
TJS
TMT
TND
TOP
TRY
TTD
TWD
TZS
UAH
UGX
UYU
UZS
VES
VND
VUV
WST
ZAR
ZMW
ZWL
America's Social Casino

Market Cap
24h Vol
13284
Cryptocurrencies
62.39%
Bitcoin Share
CoinDesk 2025-04-09 11:52:38

UK Bond Yields Hit 5.5%, Stirring ‘Memories of 2022 Pension Crisis’

UK Bond Yields Hit 5.5%, Stirring ‘Memories of 2022 Pension Crisis’

As of Wednesday morning, the yield on the UK’s 30-year government bond soared to 5.5%—its highest level since 1998—mirroring a broader climb in U.S. sovereign yields and sparking fresh concerns about financial market stability. Surging global bond yields are exerting significant downward pressure on risk assets. Since the U.S. equity sell-off began last Thursday, the Nasdaq has dropped 10%, while bitcoin (BTC) has fared slightly better, down 8% over the same period. In the same time the U.K. 30-year bond yield is up 8%, while the U.S. 30-year is up 12%. Charlie Morris, founder of ByteTree, believes investors will start to seek diversification into other assets including bitcoin. “It appears that the UK has been living beyond its means for too long. It hasn't balanced its budget since 2001, the gilt market has had enough”, Morris said. “Investors seeking diversification away from financial assets will not only buy gold, but bitcoin too”. The dramatic spike in yields has revived unsettling memories of the UK’s 2022 pension crisis, when a sudden surge in borrowing costs triggered a near-collapse of the financial system and ultimately cost then-Prime Minister Liz Truss her job. This latest bond market turmoil is being driven by escalating uncertainty around global trade, stoked by President Donald Trump’s proposed tariff plans. These levies could disrupt global supply chains and increase costs, adding pressure to already jittery markets. “Alas, in politics you never get what you want by making civil arguments from high principle,” former UK MP Steve Baker told CoinDesk in an exclusive interview. “President Trump said he was using brute economic force—and he is. It’s time to rediscover free trade at home and abroad, fast, before this chaos wrecks our futures.” The recent yield surge echoes the events of 2022, when a surprise mini-budget announcement on Sept. 23 sent gilt yields soaring, crashed the pound, and exposed deep vulnerabilities in the UK pension system. Many defined benefit pension schemes had adopted complex liability-driven investment (LDI) strategies, using leverage and derivatives to match long-term liabilities. But as yields spiked, these funds suffered massive mark-to-market losses and faced margin calls, forcing rapid gilt sales into a thin market and creating a destabilizing "fire sale" feedback loop. At the time, UK pension funds held around 28% of the gilt market. The ensuing chaos, occurring in a modest $1.5 trillion market, was so severe that it required the Bank of England to step in with emergency gilt purchases to halt the downward spiral. A Chicago Fed Letter analyzing the crisis later identified excessive leverage, asset pooling, and the limited depth of the gilt market as key structural weaknesses—particularly in contrast to the much larger $9.9 trillion U.S. Treasury market.

Most Read News

https://www.digistore24.com/redir/325658/ceobig/
Market Cap
24h Vol
62.39%
Bitcoin Share
693
Today News
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.