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Rising U.K. gilt yields worsen fiscal headroom, economist warns

Handelsbanken’s Daniel Mahoney says U.K. gilt yields are at multi-year highs, pressuring already-stretched public finances and further eroding the government’s fiscal headroom as market moves continue.

Yields on U.K. government bonds, or gilts, are at multi-year highs, adding pressure to already stretched public finances, Handelsbanken's senior U.K. economist Daniel Mahoney says in a note. "Current moves in financial markets are clearly set to further erode the government's fiscal headroom at the…