Dutch Bank: Sharp drop in UK government bond market may pressure the pound.

Jane Foley of Rabobank stated in a report that if the UK government bond market crashes, the pound looks likely to fall. She said that the UK's massive government debt and current account deficit indicate that the UK government bond market is more susceptible to market turbulence. She said, "Calls for government support for the country's economy due to rising energy prices on top of high inflation are making the UK government bond market uneasy." Concerns about UK Prime Minister Keir Starmer potentially facing a leadership challenge before the local elections in May are another risk. After US President Trump announced a delay in attacks on Iran's energy infrastructure, the pound rose 0.7% to $1.3438; the euro fell 0.4% against the pound to 0.8640 pounds.