Blain’s Morning Porridge April 22nd, 2026 – Gilts Wobble as Much as Starmer…

“All political lives end in failure…..”

The spike in Gilt Yields says it all. Its crisis – again – in Westminster as Starmer is mired in crisis with no obvious way out. Yet again we learn a political lesson – good  political leaders are a scarce commodity. The British electorate is losing faith in politics. What will global investors think?

Last Friday I was chatting to a risk officer at a US hedge fund, and he was wondering why the UK Bond market is not in more trouble? With the 10-year gilt spiking nearly 50 bp higher in just a few days - 5.14% this morning – what’s the definition of trouble?  

How much worse might it get as the government teeters on the edge of a precipice and steps forward….? Just last week I was writing how Labour could raise bond funding to finance defence and other critical crises points. Now there is talk of scaling back bond sales in the face of rising “political risk”.

Oh dear… things as so dire I might have to stop and have a nice strong cup of tea.