Former U.K. Prime Minister Liz Truss stated that soaring global bond yields point to escalating government debt and the devaluation of currencies, noting that Britain faces some of the highest vulnerability among major economies.
“Global bond yields are spiking due to mountains of debt and the U.K. is one of the worst examples,” Truss noted during an interview. “The Bank of England has printed money and debased the currency.”
The United Kingdom has encountered some of the most aggressive jumps in borrowing expenses relative to other advanced economies. The 10-year gilt yield has pushed past 5.2% while the 30-year yield approaches 6%, advancing from 5.12% back when Truss held office in 2022.
Because bond prices move inversely to yields, this selloff is not isolated to Britain. Yields have surged across the U.S., Japan, France, and Germany as well, emphasizing the increasingly international scope of pressures stemming from mounting debt, inflation, and fiscal stability.
“The only way out whilst maintaining public support is to grow the economy faster through supply-side measures whilst holding down spending. I fear, though, the situation has gone too far and we may end up with imposed emergency spending cuts,” she remarked.
The benchmark U.S. 10-year Treasury yield has climbed past 4.8%, erasing the drop that occurred after Treasury Secretary Scott Bessent revealed a buyback initiative last month targeting longer-term government debt. That yield initially dipped down to 4.62%.
Simultaneously, financial instruments linked to the currency debasement trade have retreated from recent peaks. Gold scaled up to roughly $4,700 per ounce prior to sliding back to about $4,300, near its valuation when the intervention was first made public.
Bitcoin climbed from roughly $64,000 to a peak of $81,000 before retracing to approximately $76,500, which remains comfortably above the price points seen before the announcement.
Originally published at https://www.coindesk.com/markets/2026/09/02/former-uk-prime-minister-liz-truss-says-bond-rout-could-force-emergency-spending-cuts.
