UK Treasury Bills plummeted more than Bitcoin [자료 = FT]There are some assets that have collapsed more than the unstoppable Bitcoin. These are the long-term UK government bonds that have emerged as an ambush in the global financial market these days.
The Financial Times (FT) reported on 11 (local time) that government bonds fell worse than digital assets in an article titled “Bitcoin> British Gilts”.
Bitcoin has dropped 67% since November last year, according to the FT. The UK’s 50-year linker, which expires in 2073, has dropped 78.6% since it was released on November 23 last year, the FT reported. The FT pointed out that government bonds issued by the UK government turned out to be a worse asset than Bitcoin, the so-called bubble. FT also made a self-help voice saying, “I can’t believe we’re writing articles like this.” It is hard to believe that the price of long-term British government bonds, which has been recognized as a representative safe haven, has fallen further against Bitcoin due to the recent plunge in the pound.
British Prime Minister Liz Truss, considered the culprit of the chaos in the UK financial market, said she will not cut public spending by cutting taxes. Prime Minister Truss said in a PMQ on the 12th that he would “reduce national debt in the medium term. He also reiterated that the tax cuts that have caused financial market instability would increase growth and reduce inflation. Institute for Finance (IFS) and investment bank Citi have ruled that the UK government will have to cut spending by £ 60 billion or raise taxes if it is to maintain or reduce national debt.
Criticism of Prime Minister Truss’s insistence is also growing within the ruling Conservative party. According to The Guardian, Conservative lawmaker Julian Lewis asked if there were any measures to help people with rising mortgage costs. “He’s ruined the conservatism values we’ve built over the past decade,” said Congressman Robert Halfon. “The atmosphere was like a funeral,” a Conservative MP told the Guardian.
Financial markets continued to be volatile today. According to Reuters, the 10-year Treasury bond yield was once 4.64% per annum, the highest level since the 2008 financial crisis. The yield on 20- and 30-year Treasury bills stood at 5.1. % each during the day, the highest since 2002. According to the Wall Street Journal, the International Monetary Fund (IMF) has urged governments to refrain from cutting taxes and increasing public spending to keep up with the sharp rise in inflation.
The UK Treasury is attempting to blame the market turmoil on the UK’s central bank, the Bank of England (BOE). Asked by a Sky News reporter, “What will happen after the 14th day after the end of the government bond purchase program,” said Finance Minister Quozi Kwateng, “This is a matter under the jurisdiction of the governor of the BOE “. The BOE announced that the government bond purchase program in support of pension funds will end as planned on the 14th.
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