Sterling stabilises as the global bond market cools

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waterman
Written by Dan Waterman
September 4th 2025
Let's see if GBP can 'kick-on' for the rest of the month now after the UK's 30-year bond price falls..

The interest rate on the UK's 30-year bond price has fallen from 5.75% earlier this week to 5.58% now and dropping.

This is still absurdly high of course and doesn't look a great deal different, but traders have responded well and Sterling is in the green today. A key reason for the change comes from across the pond..

For the first time since 2021, there are fewer jobs available than there are unemployed people in the US.

The USD has fallen on the news as data like this puts more onus on the Fed to look at cutting interest rates faster and/or deeper. Of course what the Fed does has huge implications on what the BoE does and so it will be an interesting Fed meet later this month.

BoE Governor Bailey has warned that the threats to the Fed's independence by President Trump are 'very serious' and he is 'very concerned'. 

He also commented on the UK's interest rate cutting path in that it is heading downwards, however, there is more doubt over the near-term future direction due to the UK's inflation number. This has been £ positive.

Finally his comments on the UK's 30-year bond price was intriguing - "It's a number that gets quoted a lot. It is quite a high number but it is not what is being used for funding at all at the moment actually".

Sterling is up nearly 0.5% in the last 24-hours across the board.