Gate.io: If UK government bonds fall before budget announcement, pound will be at risk

IG analyst Chris Turner said in a report on February 20th that if UK government bonds fall in sync with European bonds due to expectations of increased defense spending, the pound may come under pressure. He said that the days would become more difficult before Chancellor Rishi Sunak’s spending plans for March are announced. “A rise in UK government bond yields means the threshold for implementing a credible spending plan is higher, and raises questions about whether she can propose a plan that defers spending cuts to the coming years.” Sunak may need to further cut spending, otherwise if her spending plan fails to reassure the market, the UK asset market will be hit. He said that neither of these scenarios is good for the pound, and it is unlikely that the recent gains in the pound will be sustained above 1.26.