Bank of England Governor Andrew Bailey said governments need credible fiscal strategies and clear debt commitments as global bond markets come under increasing pressure.
Speaking at a central-bank conference in Istanbul, Bailey warned that investors are demanding higher yields when fiscal policy appears less predictable.
Bond-market fragility is rising
Long-term borrowing costs have climbed across major economies as investors react to high public debt, inflation risks and geopolitical shocks.
Bailey also warned that leveraged positions and algorithmic repricing can amplify market moves and force rapid selling.
He reiterated that central banks must remain focused on inflation even when governments face rising debt-service costs.
Sources
- Bank of England / Istanbul conference remarks
- Reuters, Oct. 8, 2026
