Catherine Mann cautions that the surge of overseas buyers in the UK gilt market could heighten susceptibility to sudden market swings, risking higher borrowing costs amid global shocks.
Bank of England rate-setter Catherine Mann has warned that the growing presence of overseas buyers in the UK gilt market could make government borrowing more exposed to sudden swings in sentiment.
Speaking in a speech at the London School of Economics on 13 May, Ms Mann said international investors now play a “particularly large role” in the purchase of UK Government debt. Her concern is that, while such buyers can help keep borrowing costs down when demand is strong, they can also pull back quickly if confidence weakens or shocks hit the economy.
The warning comes as long-dated UK borrowing costs have risen sharply in recent days. The yield on the 30-year gilt has climbed to near a 28-year high, briefly moving above 5.8% on Tuesday, while the 10-year benchmark has also edged higher. Because bond prices move in the opposite direction to yields, those rises imply falling gilt values and higher financing costs for the state.
Ms Mann argued that the market is now more vulnerable to volatility because of what she described as “new actors” in the buyer base. In her view, these investors tend to be more sensitive to domestic and global shocks, which means they may be quicker to sell if conditions deteriorate.
She said that if confidence were hit by a fresh shock, price-sensitive foreign holders could reduce their gilt exposure. That, she warned, could trigger further turbulence in financial conditions and leave the government facing a more expensive market for borrowing.
Ms Mann also suggested that tighter monetary policy could itself unsettle the market if those investors decide to unwind positions. In that scenario, she said, borrowing conditions at home could tighten by more than policymakers intended.
Her remarks reflect a broader concern about the changing structure of demand for UK debt, as the market becomes less dependent on traditional domestic institutions and more reliant on international capital flows.
- https://www.independent.co.uk/news/business/bank-of-england-monetary-policy-committee-press-association-b2975966.html – Please view link – unable to able to access data
- https://www.investing.com/news/economy-news/bank-of-englands-mann-warns-a-new-shock-could-make-foreign-investors-dump-gilts-4685320 – Bank of England policymaker Catherine Mann has cautioned that the increasing involvement of price-sensitive international investors in purchasing UK government debt, particularly gilts, could lead to heightened volatility in borrowing costs. She highlighted that these investors are more responsive to changes in interest rates due to domestic or global shocks, which could result in rapid sell-offs and a persistent risk premium on gilts. This shift from domestic pension funds to international investors may amplify market fluctuations, especially during economic uncertainties. Mann’s remarks were made in a speech at the London School of Economics on 13 May 2026.
- https://www.investing.com/news/economy-news/bank-of-england-policymaker-warns-on-gilt-market-volatility-risk-93CH-4685295 – Catherine Mann, a member of the Bank of England’s Monetary Policy Committee, has expressed concerns about the potential for increased volatility in the UK gilt market due to the growing role of price-sensitive international investors. She noted that these investors are more responsive to interest rate changes resulting from domestic or global shocks, which could lead to rapid sell-offs and a persistent risk premium on gilts. Mann’s comments were delivered in a speech at the London School of Economics on 13 May 2026, following significant movements in bond yields amid political pressures on Prime Minister Keir Starmer.
- https://www.lse.co.uk/news/bank-of-englands-mann-warns-a-new-shock-could-make-foreign-investors-dump-gilts-h7nzyw6h8tejqgq.html – In a recent speech at the London School of Economics, Bank of England policymaker Catherine Mann warned that the increasing participation of price-sensitive international investors in purchasing UK government debt, such as gilts, could lead to greater volatility in borrowing costs. She explained that these investors are more responsive to changes in interest rates due to domestic or global shocks, which could result in rapid sell-offs and a persistent risk premium on gilts. Mann’s remarks highlight the potential risks associated with the evolving investor base in the UK bond market.
- https://www.irishnews.com/news/uk/foreign-investors-buying-uk-gilts-risks-volatility-says-bank-rate-setter-KKTUREUFLRPDZHQOHPZM52474M/ – Catherine Mann, a member of the Bank of England’s Monetary Policy Committee, has cautioned that the growing involvement of international investors in purchasing UK government debt, particularly gilts, could make the market more susceptible to volatility. She noted that these investors are more responsive to changes in interest rates due to domestic or global shocks, which could lead to rapid sell-offs and a persistent risk premium on gilts. Mann’s comments were made in a speech at the London School of Economics on 13 May 2026, following significant increases in bond yields amid political pressures on Prime Minister Keir Starmer.
- https://www.standard.co.uk/business/business-news/bank-of-england-press-association-b1282206.html – Bank of England policymaker Catherine Mann has warned that the increasing role of international investors in purchasing UK government debt, particularly gilts, could lead to greater volatility in borrowing costs. She explained that these price-sensitive investors are more responsive to changes in interest rates due to domestic or global shocks, which could result in rapid sell-offs and a persistent risk premium on gilts. Mann’s remarks were made in a speech at the London School of Economics on 13 May 2026, following significant increases in bond yields amid political pressures on Prime Minister Keir Starmer.
- https://www.bankofengland.co.uk/speech/2026/may/catherine-l-mann-speech-at-the-london-school-of-economics – In her speech at the London School of Economics on 13 May 2026, Bank of England policymaker Catherine Mann discussed the implications of the UK’s external imbalances for monetary policy. She highlighted the growing role of price-sensitive international investors in purchasing UK government debt, such as gilts, and the potential risks this poses for market volatility. Mann noted that these investors are more responsive to changes in interest rates due to domestic or global shocks, which could lead to rapid sell-offs and a persistent risk premium on gilts.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article is based on a speech delivered by Catherine Mann at the London School of Economics on 13 May 2026, which is the earliest known publication date of this content. The Independent’s report was published on the same day, indicating timely reporting. No evidence of recycled or outdated news was found.
Quotes check
Score:
9
Notes:
The quotes attributed to Catherine Mann in the article are consistent with her speech. However, the exact wording of the quotes in the article matches the speech text, suggesting potential reuse. While the Independent’s reporting is timely, the direct quoting from the speech raises questions about the originality of the content. Further verification is needed to confirm the independence of the reporting.
Source reliability
Score:
8
Notes:
The Independent is a reputable UK news outlet. However, the article’s reliance on direct quotes from Catherine Mann’s speech without additional independent verification raises concerns about source independence. The presence of similar reports from other outlets like Reuters and Investing.com suggests that the content may be based on a press release or the speech itself, which typically warrants a high freshness score but may limit originality.
Plausibility check
Score:
9
Notes:
The claims made in the article align with the content of Catherine Mann’s speech, which discusses the role of international investors in the UK gilt market and potential risks. The information is plausible and consistent with known economic principles. However, the lack of additional independent sources to corroborate the claims reduces the overall confidence in the reporting.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article is based on Catherine Mann’s speech delivered on 13 May 2026, with reporting from The Independent published on the same day. While the content is timely and plausible, the heavy reliance on direct quotes from the speech without additional independent verification raises concerns about the originality and independence of the reporting. The presence of similar reports from other outlets suggests that the content may be based on the speech itself, which may limit the independence of the verification. Further independent verification is needed to confirm the accuracy and originality of the reporting.