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Rout in Gilt Market Would Likely Dent Sterling -- Market Talk

Dow Jones03-23

1443 GMT - Sterling looks vulnerable to falls in the event of a rout in U.K. government bonds, Rabobank's Jane Foley says in a note. The U.K.'s large government debt and current account deficit suggest the gilt market is more susceptible to suffering market jitters, she says. "On top of higher inflation, calls for the government to provide financial support for the economy in the face of higher energy prices is unsettling for the gilts market," she says. Concerns about a potential leadership challenge for U.K. Prime Minister Keir Starmer ahead of May local elections is another risk. Sterling rises 0.7% to $1.3438 and the euro falls 0.4% to 0.8640 pounds after President Trump said the U.S. would postpone attacks on Iranian energy infrastructure. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

March 23, 2026 10:43 ET (14:43 GMT)

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