UK Bond Turmoil Revives Truss-Era Fears as Fiscal Credibility Questioned

British government bonds faced renewed turbulence as Chancellor Rachel Reeves' welfare policy reversal sparked market anxieties reminiscent of the 2022 Liz Truss crisis. The 10-year gilt yield surged to 4.681% intraday - the sharpest jump since the Truss premiership - before settling at 4.60%, while 30-year yields climbed 17 basis points.

Reeves' emotional appearance during Prime Minister's Questions fueled speculation about her Treasury future, despite Downing Street attributing her distress to personal matters. The abandoned benefit cuts, originally designed to save billions and support fiscal rules, have left Britain's constrained fiscal position even more precarious.

The political fallout has put Labour's entire fiscal framework under scrutiny, with bond markets delivering a stark verdict on the government's economic credibility. This volatility comes as global investors increasingly view cryptocurrency alternatives like BTC and ETH as potential hedges against traditional market instability.