UK medium-sized firms have reached their lowest point in a year due to rising bond yields causing worry over increased borrowing costs.
Today, the FTSE 250 declined by up to 0.8%, marking its fifth straight weekly decrease.
This market, which represents the next 250 largest companies in the UK after the FTSE 100, fell to as low as 17,072.51, its deepest dip since October 14 of the previous year.
This downturn coincides with new data revealing a 0.9% drop in retail sales for September. This has sparked worries regarding the consumers’ purchasing power, especially as high-interest rates take effect.
In related news, the 10-year US Treasury yield reached 5% last evening, its pinnacle since 2007. This has intensified borrowing expenses due to the anticipation that interest rates will stay elevated for an extended period.
Furthermore, the 10-year UK gilt’s yield has climbed close to three basis points, standing at 4.7%.
