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BOE’s Bailey Says Trump Tariffs Cause Unwelcome Bond Volatility
Bank of England Governor Andrew Bailey has highlighted that recent volatility in bond markets is significantly influenced by announcements from Washington regarding US tariffs. He emphasized that this unwelcome volatility is driven by the term premium, reflecting the extra compensation investors seek for holding long-dated debt. Bailey also noted the impact of President Trump's trade actions on UK markets and echoed comments from US Treasury Secretary Scott Bessent, expressing a desire for reduced market volatility.
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