Liz Truss Warns UK Bond Rout Could Trigger Emergency Spending Cuts

Former UK Prime Minister Liz Truss says the recent spike in global bond yields shows how deep government debt problems have become, calling Britain one of the worst cases among major economies. She blames the Bank of England’s money printing for weakening the currency and pushing borrowing costs higher.

UK Yields Climb Sharply

The 10-year gilt yield has moved above 5.2%, while the 30-year is nearing 6%, up from 5.12% during Truss’s time in office in 2022. She believes growth through supply-side reform paired with tighter spending is the only realistic path forward, but fears the damage may already force emergency cuts.

Global Debt Pressure Builds

The selloff isn’t limited to Britain. Yields are also rising across the US, Japan, France, and Germany. In the US, the 10-year Treasury yield climbed back above 4.8%, erasing earlier gains from a bond buyback plan. Gold and bitcoin, both tied to debt-driven inflation fears, have also pulled back from recent highs.