Mann warns rate hikes could trigger UK gilt volatility
Mann warned that rate hikes could disrupt the gilt market as overseas investors grow. This shift may increase volatility and tighten financial conditions.
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United Kingdom policymaker Catherine Mann warned on Wednesday that interest rate hikes risk destabilizing the gilt market as overseas ownership hit 33%. The warning follows 30-year bond yields reaching their highest level since 1998 amid domestic political pressure on the government. Investors face increased volatility as price-sensitive hedge funds may exit positions faster than traditional pension funds during market shifts.
