Heightening borrowing costs have caught the attention of UK politicians, with Chancellor Rishi Sunak (pic) warning that rates may rise. Yet while the national debt has risen past a record £2 trillion (US$2.8 trillion), historically low interest rates means the cost of servicing it is low
LONDON: The head of the UK’s Debt Management Office (DMO) is hardly batting an eye over the meltdown in US Treasuries that sent shockwaves across global bond markets last week for one key reason: liquidity at home.
Chief executive officer Robert Stheeman argues gilts are more insulated from the turmoil because of the market’s smaller size and network of primary dealers, or banks tasked with backstopping the market by buying and selling the securities even at times of unexpected volatility.
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