Worst Bond Rout in Decades Intensifies With UK Losing 27%

The worst bond selloff in decades is seeing few signs of ending, with UK notes losing a stunning 27% this year, as central banks battle to stamp out the strongest inflationary pressures in decades.

The index, which tracks sterling-denominated sovereign and corporate debt, has fallen for the last seven days, including a 3.2% plunge on Monday which took it to the lowest level since 2014.

Monday’s slump came after UK Prime Minister Liz Truss’s new government rolled out plans for large-scale tax cuts in the face of an economic slowdown. That caused a slump in the pound and a record ...