The U.K. is getting a new prime minister, but bond investors are really in charge and ‘hyper-reactive,’ Wall Street veteran says

The U.K. is set to appoint Andy Burnham as prime minister, but bond markets remain hyper-reactive due to a 2022 fiscal crisis triggered by unfunded spending and tax cuts under a previous administration. An IMF report highlights the U.K.'s vulnerability to volatile capital flows and foreign investor influence, with global factors accounting for 60%-90% of yield variations. Burnham faces pressure to balance economic revival with bond market demands, as analysts warn of ongoing risks from 'bond vigilantes.'