The bond sell-off is back. The 30-year Treasury yield hit its highest since 2002 in volatile trading, and French, Italian and UK government bonds all came under pressure alongside it. For anyone holding gilts, this is a global move rather than a UK-specific one, but it lands on a market that is already sensitive to fiscal credibility.
On the Tory conference floor, Kemi Badenoch said couples would be able to leave £1m and the family home exempt from inheritance tax under a Conservative government. She says that would halve the number of families paying the tax. There was no costing in the coverage I have seen, and with gilt yields where they are, expect that to be the first question put to the policy.
Royal Mail is cutting up to 2,500 jobs, mostly head office and support roles, with the restructure due to finish by the end of next year. It cites falling letter volumes and competition. The company has also been fined £37m in total since 2023 for missing Ofcom delivery targets.
Back to the bond rout. The Banque de France’s governor, Emmanuel Moulin, says the ECB does not need to step in to calm it. That is a notable line given French paper is among the markets under pressure. He also hit out at what he called “Trump-style” threats against him from the far left.
The FT also asks how much longer the world can absorb the Iran shock. Its view is that the hit to oil supply, oil prices and the global economy has been surprisingly manageable so far. The question is whether that holds if the disruption drags on.
Separately, China’s tax authorities are going after the offshore wealth of its richest citizens. That has rattled the wealthy individuals concerned and the firms in Hong Kong, Singapore and Tokyo that manage their money.
On AI, OpenAI will watermark ChatGPT outputs by default, but only in the EU. The method is not especially reliable and is easy to circumvent. Even so, it is a compliance difference for anyone running the same AI workflows in London and the EU.
Finally, the EU has called drone attacks on shipping near NATO countries “unacceptable”. Two cargo ships have sunk, another was on fire, and sailors are dead or missing. The reporting I have does not say who is responsible.
Sources
- Couples would be able to leave £1m and family home exempt from inheritance tax under Tories, says Badenoch – UK politics live — Guardian
- Global bond sell-off resumes as 30-year Treasury yield hits highest since 2002 — FT
- Royal Mail plans to cut 2,500 jobs — BBC News
- French central bank chief says ECB intervention not needed to ease bond rout — FT
- Royal Mail to cut up to 2,500 jobs amid restructure and fall in letter deliveries — Guardian
- How much longer can the world absorb the Iran shock? — FT
- The taxman comes for China’s offshore riches — FT
- Drones sink ships near NATO countries in “unacceptable” attacks, EU says — Ars Technica
- OpenAI will watermark ChatGPT outputs by default—but only in the EU — Ars Technica
Guardian, FT, BBC News, Ars Technica — 2026-10-07