Blain’s Morning Porridge 15th April 2026 – UK Gilts.. Nothing To Worry About

“Spend, Spend, Spend”

Damn the torpedoes! Full steam ahead. The recent 10-year Gilt auction was a screaming success. There is plenty of demand at the right yield – 5% for 10 years! The cost of servicing debt is high, but to create growth the government needs to fix the economy by borrowing more. Global investors know that when assessing the UK’s yield premium. The UK would do better to borrow more rather than less! 

Time for a morning without being angry worrying about Iran, Trump and other mistakes.

Instead, let’s celebrate Gilts! Yep, I’m a great fan of the UK’s government debt market because it’s the best organised, structured and managed bond market on the planet. That’s not just national pride – I have zero concerns today the UK is about to default. (If the Greens or Reform look likely to take office I reserve the right to panic – which is why I watch UK politics so closely. I oft despair.)

Surprised at such positivity from a bond guy? You should not be. Yesterday the UK’s Debt Management Office launched a new 10-year Gilt which saw a nearly $150 bln order book for a £15 bln sale! Wowser! Who said no one wanted to buy Gilts? Well… er, buyers bought because at 4.9% it’s a historically very attractive yield.

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