LONDON (Reuters) -Investors alarmed at Britain's bleak economic outlook and political uncertainty dumped government bonds on Wednesday, extending a recent selloff and putting some gilt maturities on track for their sharpest monthly loss since records began.
Some gilts saw far heavier selling than U.S. or German bonds as a decline in the value of sterling and doubts over the ability of Britain's next prime minister to handle the growing economic crisis added to strains on investor confidence.
"I've not seen anything like this since '94," said veteran economist and market strategist Marc Ostwald from brokerage ADM Investor Services, referring to the international bond market collapse that year triggered by rising interest rates.
"This is one of those ultimate meltdowns."
"The really ugly part of it is it's relentless," Ostwald said of the sell-off in gilts.
"There's no one stepping in to catch the falling knife."
https://uk.investing.com/news/economy/uk-gilt-fire-sale-persists-5year-yield-highest-since-2010-2737350