RE: LeoThread 2026-03-25 18-54

Sovereign debt crisis upcoming in the next few years.

UK 10-year gilt yields have surged to roughly 4.9%, the highest level since the 2008 financial crisis, while shorter-term yields have also spiked sharply as markets rapidly shifted from expecting rate cuts to pricing in multiple hikes. At the same time, government borrowing is coming in far worse than expected, with a £14.3 billion deficit in February alone and total borrowing still running above £125 billion for the fiscal year. The UK now plans to issue roughly £250 billion in new gilts while already facing over £100 billion in annual interest costs, and that is the part that begins to destabilize the system when yields rise.