{
  "id": 11299366,
  "title": "The British Pound slides again as UK government bonds sell off",
  "url": "https://urgent.news/2026/10/01/the-british-pound-slides-again-as-uk-government-bonds-sell-off",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T22:26:03.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/the-british-pound-slides-again-as-uk-government-bonds-sell-off-202610012226"
  },
  "original_language": "en",
  "account": "The UK government bonds have been experiencing a sell-off, leading to a decline in the British pound against the US dollar. The 30-year gilt yield surpassed the 6% mark for the first time since 1998, causing the GBP/USD rate to plummet to its lowest level since late June. Bank of England external member Mann stated that UK financial conditions are not tight enough during a speech on the same day. The increase in market borrowing costs since the US-Iran war began indicates investors' expectations of higher inflation and potential uncertainty regarding Bank of England policy. Despite the uncertainty, the Bank of England needs to raise the UK's Bank Rate from 3.75% to maintain its credibility, with markets anticipating four rate hikes by next summer. Ten-year gilt yields reached their highest level since July 2007, two days after the government sold new 10-year debt at the highest yield for that maturity since 1999. Recent budget presentations by Chancellor Healey have not alleviated the situation, as higher gilt yields have negatively impacted the GBP/USD pair, as investors expecting higher inflation sell both bonds and currencies simultaneously. The Bank of England's response to the war in March has also contributed to market uncertainty, as investors perceived it as the central bank waiting and have kept interest rates unchanged since then. No UK economic data is scheduled for Friday, making the US Nonfarm Payrolls (NFP) report on that day the key event for GBP/USD, with expectations of 90,000 jobs added in August, down from 162,000 in the previous month. Unemployment is expected to remain at 4.1%, with average hourly earnings growing at 3.2% year-over-year compared to 3.1% in the previous year. Mann will provide further insights on Tuesday at 08:40 GMT. A strong employment report could negatively affect GBP/USD by reinforcing the US dollar and supporting gilts, potentially pushing the pound lower. Resistance levels stand at 1.3250, which capped Thursday's bounce from the initial decline, while the daily closing price has not exceeded 1.3300 since September 23. Support levels are identified at Thursday's low of 1.3200, the lowest since late June, with 1.3150 and 1.3100 as the next objectives. The overall market sentiment is bearish, with the Stochastic Relative Strength Index (Stoch RSI) near 9 and below 20 for about three weeks, suggesting a potential short-term bounce toward 1.3250.",
  "summary": "Britain's 30-year gilt yield went above 6% on Thursday for the first time since 1998, and GBP/USD fell to its lowest since late June. Bank of England (BoE) external member Mann said in a speech the same day that UK financial conditions aren't tight enough.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}